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Beta Unlevering & Relevering
Beta Unlevering & Relevering
Cadbury
BL = Bu (1+ ((1-t)D/E))
1.3 = Bu (1 + (1-0.3)4/6)
1.3 = Bu (1 + 0.4669)
1.3 = Bu (1.4669)
Bu = 0.88
Unlevered Beta of Chocolate Business =Average of
0.88 + 0.89 = 0.885