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1.An analyst gathered the following information about a private company and its publicly-traded competitor: Comparable Companies Debt/Equity Equity Beta Private company 1.00 N.A. Public company

1.An analyst gathered the following information about a private company and its publicly-traded competitor:

Comparable Companies Debt/Equity Equity Beta

Private company 1.00 N.A.

Public company 0.90 1.75

Using the pure-play method and ignore taxes, what is your estimated equity beta for the private company?

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