Show calculation and formula used to arrive to the asnswer provided below.

3. Exide Technologies has two operating divsions: car battery manufacturing (division CB ), and production of battery storage devices for large industrial usage (division IS). You have estimated that 30% of the total market value of the firm is attributable to the CB division. The company has debt financing of $100 million outstanding, for which the book value of debt is a good approximation of its market value. It also has 10 million shares of common stock outstanding, trading at \$16 per share. Exide has a corporate tax rate of 25%. You have estimated the equity beta of the firm is equal to 1.2 . a. What is the total unlevered beta of the firm? You can assume a debt beta equal to zero. b. Exide has received an offer to sell its CB division for $78 million, and will use the proceeds entirely to reduce its debt. If the asset beta of the CB division is 1.0 , what is the asset beta of the IS division? c. What will the levered beta of the company be after this transaction? a