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Company Z has an equity capitalization of $ 5 0 million, a beta of 1 . 2 , $ 1 0 million in cash, and
Company Z has an equity capitalization of $ million, a beta of $ million in cash, and no debt.
The riskfree rate is and the market risk premium is
If Company Z issues $ million in debt and repurchases stock.
What will be the beta of its remaining equity?
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