Question: a. How would the beta change if Halifax completed the acquisition and raised the bookseller's debt to 30%? Assume a zero debt beta. b. Assume

a. How would the beta change if Halifax completed the acquisition

a. How would the beta change if Halifax completed the acquisition and raised the bookseller's debt to 30%? Assume a zero debt beta. b. Assume that the new debt level will total $1170 million at an interest rate of 6% and that this debt will be the perpetual amount of debt of the firm. Calculate the equity value of the bookseller to Halifax using the adjusted present value approach

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