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A solve problem /solve? assignmen 26768 problemNo 7 https:// accep com Accep My courses BUS 307 HWK 10- Ch 13 Union Street Records is considering
A solve problem /solve? assignmen 26768 problemNo 7 https:// accep com Accep My courses BUS 307 HWK 10- Ch 13 Union Street Records is considering a new capital structure. The CFO has prepared a list of options: Option Debt-to-capital ratio Bond rating interest rate 0.02 0.03 0.25 0.5 0.05 0.07 0.75 The company currently has a debt-to-capital ratio of 0.75 (option 4) and an equity beta of 1.9. The tax rate is 34%. The risk-free rate is 2% and the expected equity market risk premium is 6%. B Attempt 25 for 10 pts. Part 1 What is the unlevered beta? R+ decimals Previous answers 1.270903 Submit B Attempt 215 for 10 pts. Part 2 Find the levered beta for each option. What is the levered beta for option 2 (debt- to-capital ratio of 0.25)? 2+ decimals Siih Ask me anything I My account Log out 6:35 PM 2/8/2016
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