j co debt to total mv 12%…asset beta=1.39..50m shares @5.80 sector debt to t mv 25%…asset beta=.75 tax 40% how to calculate avg asset beta? answer is .67×1.39 +.33x.75 where did .67 and .33 come from? (june 08 exam) ty
In future, you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other 🙂
The last sentence of the second paragraph of the question says that computer simulation systems now account for 1/3 (i.e. 0.33) of the company’s total revenue.