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3. Assume the following information: A firm's capital structure is currently all equity with an unlevered beta of 0.73. Taxes = 25%. Beta of debt

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3. Assume the following information: A firm's capital structure is currently all equity with an unlevered beta of 0.73. Taxes = 25%. Beta of debt = 0. a. Scenario 1: Now the capital structure changes from 100% equity to 70% equity and 30% debt. What is the new equity beta? b. Scenario 2: Now the capital structure changes from 100% equity to 40% equity and 60% debt. The new tax rate = 15%. What is the new equity beta? 100 melintulu of stock $14 million total value of debt =

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