Please only the last part (Equity Beta).

Return to questic Macbeth Spot Removers is entirely equity financed with values as shown below: Data Number of shares Price per share Market value of shares 1,200 $ 12 $ 14,400 Although it expects to have an income of $1,700 a year in perpetuity, this income is not certain. This table shows the return to stockholders under different assumptions about operating income. We assume no taxes. Operating income ($) 700 Outcomes 1,200 1,700 2,200 Suppose that Macbeth Spot Removers issues only $3,240 of debt and uses the proceeds to repurchase 270 shares. The interest rate on the debt is 8%. a. Calculate the equity earnings, earnings per shate, and return on shares for each operating income assumption. (Input all values as a positive number. Round your "Earnings per share" answers to 2 decimal places. Enter your "Return on shares" answers as a percent rounded to 2 decimal places. Round the other answers to the nearest whole number.) Prey 6 of 10 Next > Suppose that Macpein Spot Removers issues only P3,240 of debt and uses the proceeds to repurchase Ziu shares. The interest rate on the debt is 8%. a. Calculate the equity earnings, earnings per share, and return on shares for each operating income assumption. (Input all values as a positive number. Round your "Earnings per share" answers to 2 decimal places. Enter your "Return on shares" answers as a percent rounded to 2 decimal places. Round the other answers to the nearest whole number.) Answer is complete and correct. Outcomes 700 1,200 1,700 2,200 Operating income ($) Interest 259 259 259 259 441 941 1,941 1,441 1.55 1.07 0.47 Equity earnings ($) Earnings per share ($) Return on shares (%) 2.09 8.43 3.95 12.91 17.39 b. If the beta of Macbeth's assets is 0.84 and its debt is risk-free, what would be the beta of the equity after the debt issue? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. All-equity beta 0.84 Debt beta 0.00 D/E ratio 0.29 Equity beta 0.65 X