Question
Bailey and Sons has a levered beta of 1.4, its capital structure consists of 40% debt and the rest is in equity, and its tax
Bailey and Sons has a levered beta of 1.4, its capital structure consists of 40% debt and the rest is in equity, and its tax rate is 30%. What would Bailey's beta be if it used no debt, i.e., what is its unlevered beta?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
