average of D/E ratio (0.21). And we used the corporate tax rate in UK in 2006, 30%, because OHM is from UK. Since the beta of OHM is 0.76. We use the equation, BetaU = BetaL/[1+(1-Tc)x(D/E)], to get unleveraged beta of 0.66 b. For the tech comparables, we took the same process. We first got their D/E ratio at IPO. And we assumed the Tax rate is 30% for all three companies. From the same process mentioned above, we took the average of the three unleveraged beta, which is 1.11. (2) D/A ratio:…
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