You are told to value a private business for private to private transaction and have the following information: - The private business has a D/E ratio of 70%. - It has an average correlation with the market of 0.5 (i.e. 50% of the risk in the private business comes from the market). - Comparable firms in the same sector have an average beta of 1.5, and an average D/E of 20%. - Tax rate is 30%. a) Estimate the beta for this private business. b) Would your answer in (a) be different if you were valuing the firm for IPO? Briefly explain