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A firm is considering a change to its capital structure: - Current debt =$250,000 - Current equity =$750,000 - Current beta =1.083 - Unlevered beta

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A firm is considering a change to its capital structure: - Current debt =$250,000 - Current equity =$750,000 - Current beta =1.083 - Unlevered beta =0.866 - Risk-free rate =5.0% - Market risk premium =6.0% - The firm's tax rate =25%. - Currently, CAPM is 11.5% What would the firm's beta be if it increased its debt to $345,000 ? Select one: a. 1.165 b. 1.265 C. 1.229 d. 1.209 e. 1.000 Clear my choice. A firm is considering a change to its capital structure: - Current debt =$250,000 - Current equity =$750,000 - Current beta =1.083 - Unlevered beta =0.866 - Risk-free rate =5.0% - Market risk premium =6.0% - The firm's tax rate =25%. - Currently, CAPM is 11.5% What would the firm's beta be if it increased its debt to $345,000 ? Select one: a. 1.165 b. 1.265 C. 1.229 d. 1.209 e. 1.000 Clear my choice

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