Part -C

Levered Beta/1+(1-
Unlevered Beta Tax)*(Debt/Equity)
Companies Equity Debt

Advanta India Ltd. 3,744.20 5,738.30

Britania Industries Ltd. 5,200.40 281.50
GSK 11,441.80 -
Jubilant 2,995.50 -
Kwality Dairy 910.50 4248
Rei Agro 23,611.80 38,540.50
Venky's (India) 3,157.90 985.70
Zydua Wellness 1,868.60 -

1/3 is the Ratio

of Equity and
Levered Beta from Unlevereged Average Unlevered Beta/1+(1- Debt Given in
Beta for Equity tax)*(1/3) the Case

Levered Beta 0.47

Debt 1 25%
Equity 3 75%
WACC (cost of equity*%of equity)+(cost of debt*%of debt)*(1-tax rat
risk free rate + Beta*market risk
CAPM
premium
risk free rate 8%
Risk Premium 8%
Levered Beta 0.47
cost of equity 11.76000%

Cost of Equity Cost of Debt

TOTAL WACC
 8.82000% 1.400% 10.22000%
cost of debt Interest rate*(1-tax rate)
interest rate 8%
tax rate 30%
Cost of Debt 5.600%
 Levered Unlevered
BETA Betas
0.5472 0.26
0.2638 0.25
0.0959 0.10
0.9856 0.99
0.6357 0.15
0.5393 0.25
0.6690 0.55
0.5372 0.54
Average
Unlevered
BETA 0.38583

%of debt)*(1-tax rate)