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Given the information below on peer companies A-D, calculate the beta for company E if it has net debt/equity of 0.75 and a tax rate
Given the information below on peer companies A-D, calculate the beta for company E if it has net debt/equity of 0.75 and a tax rate of 35%.
| Company | Beta | Net debt / equity | tax rate |
| A | 1.12 | 1.15 | 35% |
| B | 1.31 | 1.48 | 35% |
| C | 1.45 | 1.23 | 35% |
| D | 1.08 | 0.95 | 35% |
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Hotel Finance
Authors: Anand Iyengar
1st Edition
0195694465, 978-0195694468
