IAmNeil

I do agree with you, except for your formula which should be:

Total Asset Beta = (Equity/Total Assets)*Equity Beta

I have no problem with the calcultation, but with the schweser definitions which are in my opinion unprecise.

By the way, I have another question. Why do we use the operating Beta for calculating the WACC ? In my comprehension the operating Beta is the Equity Beta "unleveraged". In other words, we do not take care of the amount of debt.
However by definition the WACC is the cost of capital (equity AND debt) and can becalculated as : Wd*Kd + We*Ke (=>we take into account the amount of debt)