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Converting Levered and Unlevered Beta Converting Levered and Unlevered Beta Use the givens per scenario to covert unlevered beta to levered beta. Scenario A Scenario

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Converting Levered and Unlevered Beta

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Converting Levered and Unlevered Beta Use the givens per scenario to covert unlevered beta to levered beta. Scenario A Scenario B Scenario C Unlevered beta 1.0 0.80 1.12 Tax rate 30% 35% 32% Total Debt 1,000,000 400,000 1,500,000 Total Equity 800,000 1,200,000 1,500,000 Levered beta ? ? ? Use the givens per scenario to covert unlevered beta to levered beta. Scenario A Scenario B Scenario C Levered beta 1.10 0.90 1.00 Tax rate 30% 35% 32% Total Debt 1,200,000 600,000 1,000,000 Total Equity 800,000 1,200,000 1,500,000 Unlevered beta

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