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A firm currently has no debet and the beta on the equity is 1.0. there are no corporate tax or personal taxes. If the firm
A firm currently has no debet and the beta on the equity is 1.0. there are no corporate tax or personal taxes. If the firm chooses a new debt-equity ratio of .2, the beta on its equity should be equal to.
A) .6
B) .8
C) 1.0
D)1.2
E)1.4
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