Question
.An analyst gathers the following information for Firm A and Firm B. Use the information to compute the industry unlevered beta and theappropriate beta for
.An analyst gathers the following information for Firm A and Firm B. Use the information to compute the industry unlevered beta and theappropriate beta for Company A in use in their WACC.
Firm A: CAPM beta = 0.7; debt to equity ratio = 0.4 Firm B; CAPM beta = 1.2; d e b t t o e q u i t y r a t i o = 2 .0
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Unlevered Beta:____________
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Firm A Beta:_______________
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
