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ESTA Inc. has a beta of 2, the market value of equity of $50M and the market value of assets of $83M. The corporate tax

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ESTA Inc. has a beta of 2, the market value of equity of $50M and the market value of assets of $83M. The corporate tax rate is 20%. The expected risk premium on stock market is 6.3%, while the current interest rate on T-bonds is 4%. Estimate business risk. O A. 31%. O B. 54%. OC. 65%. OD. 79%

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