What will be the beta of equity here?1.     Company tax rate is 30% 2.     Xenti

What will be the beta of equity here?1.     Company tax rate is 30% 2.     Xenti

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What will be the beta of equity here?1.     Company tax rate is 30% 2.     Xentia is financed with $25 million in market value of debt and $50 million in market value of equity.3.     Xentia has a beta of 1.6.4.     Revolutionary Technology Corporation (RTC) is currently using technology that is similar in risk profile to the new 4D project.5.     RTC is financed with $40 million in market value of debt and $40 million in market value of equity.6.     RTC has a beta of 1.757.     Xentia borrows debt capital at a cost of 8% p.a. compounded semi-annually8.     The long term market risk premium (including franking credits) is 9.75% p.a.9.     The current yield on Commonwealth Bonds is 4.25% p.a.10.  Xentia operates in an imputation tax system.

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