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8. Define Asset Betas and why are they used. a. Based on the information of IBM below, estimate the Asset Beta (solve for it in

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8. Define Asset Betas and why are they used. a. Based on the information of IBM below, estimate the Asset Beta (solve for it in the formula below and then plug in the corresponding values): Equity Beta Debt/Equity Ratio Tax Rate 1.40 0.30 30% Debt BEquity = BAsset [1+ -(1-1)] Equity tax rate

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