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El Capitan Foods has a capital structure of 38% debt and 62% equity, its tax rate is 25%, and its beta (leveraged) is 0.85. Based
El Capitan Foods has a capital structure of 38% debt and 62% equity, its tax rate is 25%, and its beta (leveraged) is 0.85. Based on the Hamada equation, what would the firm's beta be if it used no debt, i.e., what is its unlevered beta, bu? O a. 0.74 b.0.53 O c.0.38 O d. 0.66 e. 0.58
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