The following are the betas of the equity of four beverage product companies in China, and their debt/equity ratios. DE Unlevered Beta CR Beer 23.91% 0.96 44.14% 0.85 Tsingtao Wulangvie Moutai 35.50% 0.83 21.29% 0.82 (All the firms face a corporate tax rate of 20%) A. Given the unlevered beta of each firm, what do the unlevered betas tell you about these firms? B. Assume now that Moutai is planning to increase its debt/equity ratio to industry average. What will its new beta be? C. If you were valuing an initial public offering in the beverage products area in China, what beta would you use in the valuation? (Assume that the firm going public plans to have a debt/equity ratio of 50%.)