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1. A firm has 40 million shares outstanding selling at $20 per share and a debt equity ratio of 25%. Estimate the capital structure of

1. A firm has 40 million shares outstanding selling at $20 per share and a debt equity ratio of 25%. Estimate the capital structure of the firm.

2. A stock has a beta of 1.4 and the D/E ratio is 40%. If the tax rate of the firm is 35% what is the value of the unlevered beta? Round your answer to two decimal places.

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