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  • WD

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    Durgesh Chauhan
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    wd.txt

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    1 views1 page

    WD

    Uploaded by

    Durgesh Chauhan

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as txt, pdf, or txt
    of 1

    Step 3) Compute the average of the asset betas

    Unlevered
    (asset) beta
    1.392 1.305 .536
    .752
    .724
    Average unlevered
    (asset) beta
    (1.392+1.305+.536+.752+.724+1.043)/6
    = .959
    Step 4) Re-lever the average asset beta
    BL = Bu(1+ (D/E) * (1-T))
    Debt % in capital for Restaurant division = 42%

    1.043

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