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A firm has a debt / equity ratio of 0 . 5 0 and a tax rate of 4 0 . 0 percent. Its equity
A firm has a debtequity ratio of and a tax rate of percent. Its equity beta is while its asset unlevered beta is Given a riskfree rate of percent and an expected return on the market of percent, the equity has a required rate of return of percent. As you can calculate, of the investors' required rate of return comes from the riskfree rate compensates the investor for the time value of money As shown in this course, the investor is also compensated for business risk and financial risk. Given this information, determine what percentage of the investors' total required rate of return is compensation for business risk.
Enter your answer is decimal format, truncated to three decimal places. For example, if your answer is enter
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