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Need help answering the following: A company is operating in three areas of the economy (sectors or industries) and the divisional betas are presented below:

Need help answering the following:

  1. A company is operating in three areas of the economy (sectors or industries) and the divisional betas are presented below:
  • Beta Value

Division A .75 $200,000

Division B 1.05 $800,000

Division C 1.60 $500,000

What is the companys beta?

  1. 2.Foe Corporations has the capital structure given below:

Debt (at market value) $2,000,000

Preferred stock (at market value) $600,000

Common stock (at market value) $ 3,000,000

Assuming the market weight are also the target weights for Foe Corp. please calculate the weights that should be used to find the weighted average cost of capital for Foe Corp.

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