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ABC Inc. has a beta of 1.2, the market value of equity of $40M and the market value of debt of $60M. The corporate tax

ABC Inc. has a beta of 1.2, the market value of equity of $40M and the market value of debt of $60M. The corporate tax rate is 20%. Estimate unleveraged beta.

A. 0.35.
B. 0.45.
C. 0.55.
D. 2.6.

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