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* A comparable firm ( i . e . , same industry and similar operations as our firm ) has an equity beta of 0
A comparable firm ie same industry and similar operations as our firm has an equity beta of and a debttovalue ratio of The debt of the comparable firm is riskfree. Our firm has a debttovalue ratio of Assuming both firms should have the same asset beta, and that our debt is also riskfree, what is a good estimate of our equity beta? Give your answer to the closest
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