Boise Cascade also had debt outstanding of $1.7 billion and a market value of equity of $1.5

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Boise Cascade also had debt outstanding of $1.7 billion and a market value of equity of $1.5 billion; the corporate marginal tax rate was 36%.

a. Assuming that the current beta of 0.95 for the stock is a reasonable one, estimate the unlevered beta for the company.

b. How much of the risk in the company can be attributed to business risk and how much to financial leverage risk?

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Applied Corporate Finance

ISBN: 978-1118808931

4th edition

Authors: Aswath Damodaran

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Question Posted: Apr 15, 2015 09:04 AM

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Boise Cascade also had debt outstanding of $1.7 billion and a market value of equity of $1.5

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a The levered beta of the company is given by formu...View the full answer

Applied Corporate Finance

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