You are valuing a privately owned restaurant chain called The Sanitary. To estimate the required return of stockholders you need an asset beta for the restaurant business. You have determined that the most similar business to The Sanitary is a chain called Grungy's, which has an equity beta of 1.3125 and a debt-to-equity ratio of 0.75. What is the asset beta for the restaurant business based on Grungy's? Assume that debt betas are zero and that both companies pursue capital structure policies with a fixed debt- to-value ratio Asset beta- The asset beta for the automobile business is equal to 1. Ford has a debt beta of 0.25 and it maintains a debt-to-value ratio of 0.4. It regards that ratio as optimal and intends to maintain it in perpetuity. What is the equity beta for the Ford Motor Co.? Equity beta