本题原版书的答案是B，但这里答案变成了C

NO.PZ201512300100000406

B.

0.85.

C.

0.89.

解释：

C is correct.

The steps to estimating a beta for a non-traded company are:

Step 1 Select the comparable benchmark

Step 2 Estimate benchmark’s beta

Step 3 Un-lever the benchmark’s beta

Step 4 Lever the beta to reflect the subject company’s financial leverage

The beta of the benchmark peer company data is given as 1.09. Next, this beta needs to be unlevered, calculated as:

$\beta_u=\left[\frac1{1+\left(\left(1-t\right){\displaystyle\frac DE}\right)}\right]\beta_l$

$\beta_u=\left[\frac1{1+\left(\left(1-0.3\right)\frac{0.6}{0.4}\right)}\right]1.09=0.532$

The beta of the benchmark peer company data is given as 1.09. Next, this beta needs to be unlevered, calculated as:

${l}\beta'_E=\left[1+\left(1-t\right)\frac{D'}{E'}\right]\beta_u\\$

${l}\\\beta'_E\approx\left[1+\left(1-0.3\right)\left(\frac{0.49}{0.51}\right)\right]\left(0.532\right)=0.889$