Your firm is considering a project in the retail sector. This project will be all-equity financed. You are trying to assess the beta for this project. XYZ corp is a publicly traded firm and is in the same line of business. XYZ has 100 million of AA-rated debt outstanding and you deem this dept to be risk-free. XYZ has an equity beta of 1.50 and has 30 million shares outstanding with a price of $10 per share.

 Calculate the estimates of the project's beta. 

Answer rating: 100% (QA)

To calculate the projects beta you can use the concept of the weighted average beta of the companys ... View the full answer