Question 1: The Board of Directors of Omicron Industries (OMC), a worldwide manufacturing conglomerate, has become increasingly nervous about OMCs ability to meet its carbon emissions targets. As such, the Board has decided to explore the possibility of selling the companys bauxite^[1] mining subsidiary. They have asked you, an analyst in Omicrons finance department, to calculate the Bauxite Divisions Enterprise Value (EV) as an independent public company.

Your first step is to determine the Unlevered (or Asset) Beta for the bauxite mining industry. Omicrons bankers at Goldman Sachs send you the following list of comparable companies:

*Empresas Tempestad is a Spanish company traded on Bolsa de Madrid.

Based upon the information above, what is the average Asset Beta for the bauxite mining industry? You will need to calculate the Equity Ratio and Asset Beta for each comparable company. What questions, if any, do you have for the Goldman bankers about how this list was compiled? Please ATTACH the completed Excel spreadsheet from D2L Week 5 Content.

^[1] Bauxite is the commercial ore used in aluminum production.