ch.14question2

Eckerd Inc. has $1,050,000 in assets that were financed using $625,000 in equity and $425,000 in debt. The company's beta is 1.45 and its tax rate is 35%. Using the Hamada equation, what is its unlevered beta, bu? (A) 0.83 B 0.90 1.01 E 1.15 1.23

Eckerd inc. has $1,050,000 in assets that were financed using $625,000 in equity and $425,000 in debt. The company's beta is 1.45 and its tax rate is 35%. Using the Hamada equation, what is its unlevered beta, bu? 0.83 0.90 (C) 1.01 (D) 1.15 1.23