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18. El Capitan Foods has a capital structure of 40% debt and 608 ity, its tax rate is 358, and its beta (leveraged) is 1.3.
18. El Capitan Foods has a capital structure of 40% debt and 608 ity, its tax rate is 358, and its beta (leveraged) is 1.3. Based on the Hamada equation, what would the firm's beta be if it used no debt, i.e., what is its unlevered beta? a. 0.71 b. 0.75 c. 0.79 d. 0.91 e. 1.02
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