Question
The following data pertains to eight firms operating in the cement industry. Firm Equity Value (INR crores) Net Debt (INR crores) Equity Beta A
The following data pertains to eight firms operating in the cement industry.\ \ Firm Equity Value (INR crores) Net Debt (INR crores) Equity Beta\ A 15,500 45,000 1.35\ B 27,500 25,000 1.10\ C 125,000 250,000 1.65\ D 40,000 100,000 1.33\ E 225,000 1,750,000 0.30\ F 75,000 150,000 0.50\ G 50,000 500,000 0.90\ H 60,000 200,000 0.22\ \ all these firms have zero debt beta and a tax rate of 25%. What is the average asset beta for these eight firms? Consider three decimals for E/V and asset beta. \ \ a. 1.128\ b. 1.25\ c. 1.374\ d. 0.9\ Which option is correct
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