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( 1 0 points ) Suppose Arturu Corp has an equity beta of 1 . 2 and a debt beta of 0 . 2 5
points Suppose Arturu Corp has an equity beta of and a debt beta of The firm' debtequity ratio is Arturu Corp's WACC is percent, and its cost of debt is percent
a What is the company's cost of equity capital?
b What is the company's unlevered cost of equity capital?
c Estimate Arturu Corp's asset beta.
d Suppose Arturu Corp were to increase its leverage so that its debtequity ratio is Assuming its debt beta does not change, what should its cost of equity capital and equity
beta be after the increase in leverage?
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