Assume Groupon has two divisions, mobile technology and a sales force division.

Question

Assume Groupon has two divisions, mobile technology and a sales force division. The sales force division is worth about $6B and has a beta of 1.5. Also assume that Groupon has 1 billion shares outstanding trading a price of $7/share. The expected return to these shares is 17%. Groupon also has $3B in debt with a beta of 0.2. If the risk-free rate is 3% and the expected market return is 11%, what is the expected return to the mobile technology division? Enter your answer as a number between 0 and 100 (i.e. 5 if the answer is 5%, not .05). Round to one decimal place.

Explanation / Answer

kindly mail me your email id, i have done assignment but i cant upload it here. vote this as the best answer and i will email it to you.

techidse@gmail.com

thanks

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