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A firm has a capital structure that consists of $250,000 debt and $800,000 of equity, and its tax rate is 25%. Its current beta is

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A firm has a capital structure that consists of $250,000 debt and $800,000 of equity, and its tax rate is 25%. Its current beta is 1.05 What would its beta be if it used no debt at all? Select one: O a. 0.851 O b. 1.117 0 . 0.800 O d. 0.840 O e. 1.000

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