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A firm is analyzing the impact of a change in capital structure if it changes its debt level from 25% to 60%. The risk-free rate,
A firm is analyzing the impact of a change in capital structure if it changes its debt level from 25% to 60%. The risk-free rate, rRF, is 5.0%, the market risk premium, is 6.0%, and the firms tax rate is 40%. Currently, the cost of equity, rs, is 11.5%. Based on the Hamada formula what is the firm's unlevered beta?
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