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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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