Determine the pure project beta of a project that has $45\%$ debt and $55\%$ equity. The beta for the company is $1\mathrm{.}6,$ and it has a tax rate of $40\%.$

Question $23$Answer

a$.$

$2\mathrm{.}07$

b$.$

$1\mathrm{.}07$

c$.$

$1\mathrm{.}83$

d$.$

$1\mathrm{.}82$