Question
23. The market values of a firms debt and equity are $100 million and $200 million, respectively. The debt is considered riskless. The corporate tax
23. The market values of a firms debt and equity are $100 million and $200 million, respectively. The debt is considered riskless. The corporate tax rate is 34%. The beta of the firms equity is 2. Determine the unlevered beta for this firm.
____
- 1.50
- 1.20
- 1.80
- 1.00
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McMillan On Options
Authors: Lawrence G. McMillan
2nd Edition
0471678759, 978-0471678755
