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Assume there are perfect capital markets and no taxation. Company A has a debt to equity ratio equal to 1, and the return on assets
Assume there are perfect capital markets and no taxation. Company A has a debt to equity ratio equal to 1, and the return on assets is 12%. Finally, the risk free rate is 3% the market risk premium is 8% and the beta of equity is 1.8. What is the beta of debt?
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