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8. Immediately prior to issuing its first tranche of debt, a UK company's shares had a beta of 0.8. Immediately following the issue, the company's
8. Immediately prior to issuing its first tranche of debt, a UK company's shares had a beta of 0.8. Immediately following the issue, the company's shares had a beta of approximately 1.23. Given these betas, which of the following is most likely to be the company's gearing ratio (Debt:Equity) after the issue? a) 2:3 b) 1:2. c) 2:1. d) 3:2
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