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D. 1.25% worse than expected on a monthly basis during the period of the regression. E. None of the above. (1 point) b. You now

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D. 1.25% worse than expected on a monthly basis during the period of the regression. E. None of the above. (1 point) b. You now realize that MAD Inc went through a major restructuring at the end of last month (which was the last month of your regression), and made the following changes 0 The firm sold off its magazine division, which had an unlevered beta of 0.6, for $ 20 mlion. o It borrowed an additional $ 20 mlion, and bought back stock worth $ 40 million. After the sale of the division and the share repurchase, MAD Inc. had 35 40 million in debt and $ 120 million in equity outstanding. If the firm's tax rate is 40%, re-estimate the beta, after these changes

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