Question
Etsy has an equity beta of 1.61 with a D/E ratio (leverage) of 1.2. As an analyst in an investment bank, I am preparing an
Etsy has an equity beta of 1.61 with a D/E ratio (leverage) of 1.2. As an analyst in an investment bank, I am preparing an IPO of a new similar company that will have a higher D/E ratio of 1.5. Both companies have a tax rate of 30%. What is the Beta of the NEW Company?
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the formula for levered beta Levere...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
