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A firm has a capital structure that consists of $350,000 debt and $750,000 of equity, and its tax rate is 25%. Its current beta is
A firm has a capital structure that consists of $350,000 debt and $750,000 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:
a. 0.778
b. 1.124
c. 0.716
d. 0.840
e. 1.000
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