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26. An analyst gathered the following information about a private company and its publicly traded competitor: Comparable Companies Tax Rate Debt/Equity Equity Beta Private company
26. An analyst gathered the following information about a private company and its publicly traded competitor: Comparable Companies Tax Rate Debt/Equity Equity Beta Private company 30.0% 1.00 N.A. Public company 35.0% 0.90 1.75 Using the pure-play method, the estimated equity beta for the private company is closest to: A. 1.029. B. 1.104. C. 1.877
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