An equity analyst needs to estimate the beta of the restaurant business in the UK. She gathers data on three companies that own and manage pubs, bars and restaurants in the country, namely, the Restaurant Group (whose main brand is Frankie & Benny’s), Mitchells & Butlers (which owns brands such as Toby Carvery and All Bar One) and Wetherspoon PLC. These companies’ betas and capital structures, obtained from the Bloomberg terminal, are as follows: Restaurant Group has an equity beta of 1.47 and is financed 50% by debt and 50% by equity. Its equity market capitalisation is 700m GBP. Mitchells & Butlers has an equity beta of 0.21 and is financed 40% by debt and 60% by equity. Its equity market capitalisation is 1.9b GBP. Wetherspoon has an equity beta of 0.80 and is financed 30% by debt a