Question
3. RAD has 916.18 million shares outstanding today, trading at $6.67 per share. Assuming that the book value of debt on its books, which is
3. RAD has 916.18 million shares outstanding today, trading at $6.67 per share. Assuming that the book value of debt on its books, which is $5.904 billion, is equal to market value (of debt), estimate the bottom-up levered beta for RAD. The firm has a marginal tax rate of 40%. Unlevered beta 2.06.
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
