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step by step of all equations used and explanations claearly. (a) Suppose Carter ChemicalCompany's management conducts a study and concludes that if Carterexpands its consumer products division (which is less risky thanits primary business, industrial chemicals), the firm's beta willdecline from 1.1 to 0.9. However, consumer products have a somewhatlower profit margin, and this will cause Carter's growth rate inearnings and dividends to fall from 7 percent to 6 percent. Shouldmanagement make the change? Assume the following:ERM= 10% ; RF=7.5%;D0=$2.(b) Assume all the factsas given in part (a), except the one about the changing betacoefficient. By how much would the beta have to decline to causethe expansion to be a good one? (Hint: set P0under thenew policy equal to P0under the old one, and find thenew beta that produces this equality.)