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1. Please consider the following company items: 27 Other items Tax rate Unlevered beta Target debt/equity ratio Bond rating 25% 0.60 0.30 BBB 2.0% 9.0%
1. Please consider the following company items: 27 Other items Tax rate Unlevered beta Target debt/equity ratio Bond rating 25% 0.60 0.30 BBB 2.0% 9.0% Market risk premium Risk free rate Small firm premium Credit spread debt 6.0% 3.0% 2.0% 1.5% Long term growth Long term ROCB To estimate the beta of equity we can re-lever the unlevered beta with the Hamada formula. What is the re-levered beta of this company? Please round your calculation to one decimal place and use a period to indicate the decimal place (e.g. 2.1 instead of 2.1)
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