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9/26/2017 Risk and Return in Practice: Problems E. None of the above. (1 point) b. You now realize that MAD Inc went through a major
9/26/2017 Risk and Return in Practice: Problems E. None of the above. (1 point) b. You now realize that MAD Inc went through a major restructuring at the end of last run the last month of your regression), and made the following changes Translating o The rm sold off its magazine division, which had an unlevered beta of 0.6, for $ 0 It borrowed an additional $ 20 million, and bought back stock worth $ 40 million. After the sale of the division and the share repurchase, MAD Inc. had 35 40 million in debt and $ 120 million in equity outstanding. If the rm's tax rate is 40%, re-estimate the beta, after these changes
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