Indell stock has a current market value of $150 million and a beta of 0.70. Indell currently
Question:
Indell stock has a current market value of $150 million and a beta of 0.70. Indell currently has risk-free debt as well. The firm decides to change its capital structure by issuing $39.34 million in additional risk-free debt, and then using this $39 million plus another $11 million in cash to repurchase stock. With perfect capital markets, what will be the beta of Indell stock after this transaction?
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Heres how to estimate the beta of Indell stock after the transaction 1 Calculate the weights ...View the full answer
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Related Book For 
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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