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A firm is currently 100% equity financed and the beta of its equity is 0.9. If the firm changes to 20% debt financing and the

A firm is currently 100% equity financed and the beta of its equity is 0.9. If the firm changes to 20% debt financing and the beta of debt iss 0.1.

What will be the beta of its equity after the change in the capital structure?

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