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DualPro Inc. has A shares outstanding, selling for B per share. The market value of debt and equity is 50,000 each, while the book value
DualPro Inc. has A shares outstanding, selling for B per share. The market value of debt and equity is 50,000 each, while the book value is 70,000 and 80,000 respectively. The firm faces a tax rate of t% and beta ratio of 1.25. It is planning to issue D million in new debt and acquire a new business for that amount, with the same risk level as the firm's existing business. What will the Levered Beta be after this acquisition
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