Dear John,
After implementing the proposal, why the MV equity used is $42,614,000? Since the asset beta we calculated is for hotel services only, shouldn't we take the MV equity of the hotel services only, which would be ($42,614,000 x 60%).
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Coeden Co (Dec2012)
8y ago#1No - this is to account for the gearing, which is independent of the business sectors.
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