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AllCounty is financed with 25% debt and the rest equity. It has an equity beta of 1.1 and a debt beta of 0. AllCounty's
AllCounty is financed with 25% debt and the rest equity. It has an equity beta of 1.1 and a debt beta of 0. AllCounty's tax rate is 25%. If AllCounty issues debt to repurchase equity so that the new firm is now 37% debt, what will be its new equity beta? (Continue to assume the debt beta remains at 0.) AllCounty is financed with 25% debt and the rest equity. It has an equity beta of 1.1 and a debt beta of 0. AllCounty's tax rate is 25%. If AllCounty issues debt to repurchase equity so that the new firm is now 37% debt, what will be its new equity beta? (Continue to assume the debt beta remains at 0.)
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
