a) Estimate the asset beta of Firm 1. Repeat for Firm 2 and Firm 3 b) Firm 1 and Firm 3 decide to merge into one firm. W
Posted: Sat Feb 26, 2022 9:09 am
a) Estimate the asset beta of Firm 1. Repeat for Firm 2 and Firm
3
b) Firm 1 and Firm 3 decide to merge into one firm. What is the
asset beta for the conglomerate?
c) Firm 2 wins a law suit and recieves 1000 cash. How would its
asset beta change? Assume that the beta of cash is 0.02
3
b) Firm 1 and Firm 3 decide to merge into one firm. What is the
asset beta for the conglomerate?
c) Firm 2 wins a law suit and recieves 1000 cash. How would its
asset beta change? Assume that the beta of cash is 0.02