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Why in calculating retail beta we do not include fixtures abnd equipment in calculating the value of propeety?
one more confusion
why we are using weighted average beta to calculate cost of equity and why we cant directly use equity beta of bbs store as bbs store beta have the effect of both retail and properry?Thankyou in advance
I am not sure but this what I think, Total bbs value using current share price is 6800. So to split this in to retail and property from the given information is that property land and building plus new building is 2462. So to get retail value deducts the bbs value 6880 and you will end up on 4338. I believe this figure include your equipment and fixture bro.
For your second question the bbs store after the property sale is not the one you know before it is changed for good. Ignore that BBS
Hope it helps I have posted one question just now if you know it
i have posted one qestion just now if u know it please reply to me
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