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Calculate the firm's relevered beta using the information below. K m = 11.00% current debt $250,000 K rf = 5.00% current equity $750,000 Tax rate
Calculate the firm's relevered beta using the information below.
Km = | 11.00% | current debt | $250,000 | |
Krf = | 5.00% | current equity | $750,000 | |
Tax rate = | 25.00% | new debt level | $345,000 | |
current B | 1.0830 | unlevered B | 0.8664 |
Select one:
a.
1.1653
b.
0.9660
c.
1.0830
d.
1.4566
e.
1.6931
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