Question
Ang Enterprises has a levered beta of 1.5, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. Use
Ang Enterprises has a levered beta of 1.5, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. Use the Hamada equation to determine what Ang's beta would be if it used no debt, i.e., what is its unlevered beta?
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
