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Determine the unlevered beta value of the assets in each of the 4 companies. Company Beta on E D / V Rating of debt Beta
Determine the unlevered beta value of the assets in each of the 4 companies.
| Company | Beta on E | D / V | Rating of debt | Beta on debt |
| X | 1,72 | 0,28 | BB | 0,17 |
| Y | 1,39 | 0,11 | BBB | 0,1 |
| Z | 1,29 | 0,09 | A | 0,05 |
| W | 1,49 | 0,17 | B | 0,26 |
| E[r] | 7% | |||
| R(f) | 0,75% | |||
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
