You have been asked to estimate the beta of a high-technology firm which has three divisions with the following characteristics. Division Personal Computers Software Computer Mainframes Beta Market Value 1.60 $100 million 2.00 $150 million 1.20 $250 million a) What is the beta of the equity of the firm? (10 marks) b) What would happen to the beta of equity if the firm divested itself of its software business? (10 marks) c) If you were asked to value the software business for the divestiture, which beta would you use in your valuation? (5 marks)