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14. Liverpool Foods has a capital structure of 50% debt and 50% equity, its tax rate is 35%, and its beta (leveraged) is 1.37. Based

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14. Liverpool Foods has a capital structure of 50% debt and 50% equity, its tax rate is 35%, and its beta (leveraged) is 1.37. Based on the Hamada equation, what would the firm's beta be if it used no debt, i.e., what is its unlevered beta, bU? a) 0.87 b) 0.83 O c) 0.79 d) 0.71 e) 0.75

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