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A firm has an equity beta of 1.30 and is currently financed by 25 per cent debt and 75 per cent equity. What will be

A firm has an equity beta of 1.30 and is currently financed by 25 per cent debt and

75 per cent equity. What will be the companys new equity beta if the company

changes its financing to 33 per cent debt and 67 per cent equity? Assume corporation

tax is 30 per cent.

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