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To be able to compute the beta, To start with the comparable facts for the cafe and lodging division has become utilized to calculate the unlevered asset beta with the respective leverage ratios with the comparables and then an average asset beta has been calculated.
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The calculation of WACC requires calculating For starters the expense of equity and cost of debt. As a way to calculate the expense of equity for each of your three divisions, the danger totally free fee used for the lodging division is eight.
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