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Currently, the CBA corporation has a capital structure consisting of 30% debt and 70% equity. CBA's debt currently has an 8% yield to maturity (cost

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Currently, the CBA corporation has a capital structure consisting of 30% debt and 70% equity. CBA's debt currently has an 8% yield to maturity (cost of debt). The risk-free rate is 4% and the market risk premium is 6%. Using the CAPM, CBA estimates that its cost of equity is currently 13%. The company has a 40% tax rate What would be CBA's beta if it had no debt in its capital structure? O a. 1.19 O b. 1.72 O c. 1.34 O d. 1.44 O e. 1.81

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