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6-A large public company has a beta of 1.45, a debt ratio of 35% and a tax rate of 36%. A similar private company has
6-A large public company has a beta of 1.45, a debt ratio of 35% and a tax rate of 36%. A similar private company has a debt ratio of 40% and tax rate of 32%. What is the beta of the private company?
a) 1.21
b) 1.35
c) 1.42
d) 1.57
e) 1.69
NEED to see the work and formulas PLZ. Will rate! :)
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