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Counts accountings has debt (10% of assets) and equity (90% of equity). Under current capital structure, its beta is 1.2. Tax rate is 30%. Hint:
Counts accountings has debt (10% of assets) and equity (90% of equity). Under current capital structure, its beta is 1.2. Tax rate is 30%. Hint: use Hamada equation. A) Please estimate unlevered beta with 0% debt. B) Please estimate levered beta with debts (30% of assets).
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