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ABC Company currently has a capital structure consisting of 45% debt and the remaining as equity, a levered beta of 1.72, and its tax rate
ABC Company currently has a capital structure consisting of 45% debt and the remaining as equity, a levered beta of 1.72, and its tax rate is 40%. The company is considering to adopt a new capital structure of 23% debt and the remaining as equity. What would the company's new levered beta be under the new capital structure? Round your answer to two decimal places. (Hint: Use the Hamada equation.) O 1.30 O 1.42 O 1.36 O 1.39 O 1.33
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