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A firm with an asset beta of 1.0 has a debt beta of zero when 20% of the capital structure is debt, and is estimated

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A firm with an asset beta of 1.0 has a debt beta of zero when 20% of the capital structure is debt, and is estimated to have a debt of .15 if debt went as high as 50% of the capital structure. What is the equity beta under? a) Low debt b) High debt

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