Question
A firm currently has an asset beta of 0.5, an equity beta of 1.3, and a leverage of 60%. They plan to change their capital
A firm currently has an asset beta of 0.5, an equity beta of 1.3, and a leverage of 60%. They plan to change their capital structure to a new leverage of 38%. What will the asset beta be if the company does change its leverage?
Enter your answer rounded to 1 decimal.
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The Complete Direct Investing Handbook
Authors: Kirby Rosplock
1st Edition
1119094712, 978-1119094715
