Fit to page Page view A Running a regression of XLO plc's historical stock returns on the corresponding market index yields a beta of 1.7. The comp any is considering a recapitalisation which will take its DE ratio from 20 to 40%. If thi UK corporate tax rate is 20% answer the following two questions: 24. The firm's unlevered beta is approxi mately a) 1.47 b) 1.42 c) 1.7 d) 1.86 25. The estimated levered beta of the firm following the recapitalisation is approximately: a) 2.17 b) 1.86 c) 1.70 d) 1.93