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Hamada s equation can be used to estimate the change of beta resultant from a change in leverage. Suppose a company has a beta of

Hamadas equation can be used to estimate the change of beta resultant from a change in leverage. Suppose a company has a beta of 1,10 with a debt/equity ratio of 2 and that the applicable tax rate is 27%. What would the unlevered beta be for the company as determined by the equation?
a.
0.45
b.
0.41
c.
2.00
d.
1.10

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