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BBC Inc. has an equity beta of 1.33 and a debt beta of 0.59. It's debt to equity ratio is 4/5 and the tax rate
BBC Inc. has an equity beta of 1.33 and a debt beta of 0.59. It's debt to equity ratio is 4/5 and the tax rate is 34%. CBC Inc. has the same asset beta as BBC Inc. If it finances its assets with 56% debt and its debt beta is 0.1 higher than BBC's debt beta, what is CBC's equity beta?
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