To determine henkel corporate beta

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To determine Henkel corporate beta, unlever (and relever) the ordinary least squares (OLS) market betas for each company in the European household and Personal Care segment. To determine the OLS market beta, regress 10 years monthly returns against the MSCI World index denominated in the same currency.In Excel, this can be done uusing the slope formula. Next unlever the market beta using each companys year end debt to equity ratio and the formula: bu=be/(1+D/E). To determine Henkel corporate beta, relever the average industry beta using Henkels year end debt to equity ratio. Repeat this process for each of henkel divisions.

Reference no: EM13240049

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