Concord Hotels is a publicly traded hospitality company, owning hotels in the United States and Canada....

  

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Concord Hotels is a publicly traded hospitality company, owning hotels in the United States and Canada. It has 80 million shares trading at $25/share and $500 million in debt outstanding (book and market terms). The unlevered beta of being in the hotel business is 0.80. a. Estimate the levered beta for Concord Hotels. (You can assume that Concord has a negligible cash balance and that the marginal tax rate is 40% for all companies). Concord Hotels is a publicly traded hospitality company, owning hotels in the United States and Canada. It has 80 million shares trading at $25/share and $500 million in debt outstanding (book and market terms). The unlevered beta of being in the hotel business is 0.80. a. Estimate the levered beta for Concord Hotels. (You can assume that Concord has a negligible cash balance and that the marginal tax rate is 40% for all companies).