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3, Falcon Ski currently has a capital structure consisting of 40% debt and 60% equity, a levered beta of 1.30, and its tax rate is

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3, Falcon Ski currently has a capital structure consisting of 40% debt and 60% equity, a levered beta of 1.30, and its tax rate is 40%. The firm is considering to adopt a new capital structure of 20% debt and 80% equity, what would the firm's new levered beta be under the new capital structure? A. 0.88 B. 0.93 C. 1.07 D. 1.15 E. 1.21

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