Question
21. Philippine Packing Corporation has a levered beta of 1.3 and an equity of P 540 million and a debt of P 720 million. Its
21. Philippine Packing Corporation has a levered beta of 1.3 and an equity of P 540 million and a debt of P 720 million. Its tax rate is 40%. What is its unlevered beta?
bLevered = bUnlevered x [1 + (1 T) (D/E)]
Group of answer choices
a. 0.35
b. 0.72
c. 1.40
d. None of the above
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Quantitative Trading
Authors: Ernest P. Chan
2nd Edition
1119800064, 978-1119800064
