Question
Andrew & Sons Company, which is in the 36% tax bracket, has riskless debt in its capital structure which makes up 40% of the total
Andrew & Sons Company, which is in the 36% tax bracket, has riskless debt in its capital structure which makes up 40% of the total capital structure, and equity is the other 60%. The beta of the assets for this business is .8 and the equity beta is:
A. 0.53.
B. 0.73.
C. 0.80.
D. 1.14.
E. 1.47.
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Financial Markets And Institutions An Introduction To Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
3rd Edition
0073250937, 9780073250939
