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* Consider this case: Globex Corp. is an all-equity firm, and it has a beta of 1. It is considering changing its capital structure to

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Consider this case: Globex Corp. is an all-equity firm, and it has a beta of 1. It is considering changing its capital structure to 60% equity and 40% debt. The firm's cost of debt will be 8%, and it will face a tax rate of 25% What will Globex Corp's beta be fit decides to make this change in its capital structure? 3

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