Hello sir, my question is in this sum,it is not clear from the sum whether debt beta is applicable in which case,”both printer division or spares division”, or in one case only,plus I cannot calculate weight of debt and equity in this sum, plus I cannot solve 2nd & 3rd part of this sum, please help.
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first q 3
Market value dia hai Beta bhi simplely avg karke beta of portfolio nikal lo then
Bp is 1.1083 toh chaiye 0.8 toh risky portfolio should be 0.8/1.1083 = 0.7218
I e 72.18 toh Rd should be 27.81 toh extra amount nikal lo jo invest karna padega i e 120000 = 72.18% toh 100% kitna hoga
Now q 2
two division ka value dia hai toh beta of company nikal lo toh usse beta of company nikal jayega and then simply formula use karke beta of equity ah jayega