Question 1 Table and co. is a company operating a chain of family-friendly, low-budget restaurants. After unlevering the equity beta of its main competitors you estimate that the asset beta in Table and co.'s core business is 0.68. Having hoarded large piles of cash during a few successful years, the company's management is now considering acquiring three independent breweries located in East London. This is the first step of a strategy to diversify in the alcoholic beverages sector, for which you have estimated an asset beta equal to 0.80. The company's CFO team has asked you to advise them on the valuation of the acquisition targets. However, the CFO insists that the discount rate they recently used to value a new restaurant opened in London can be used as well in the WACC valuation of the breweries. Do you agree with them? Why or why not?