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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 1,00

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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 1,00 with a debt/equity ratio of 2 and that the applicable tax rate is 28%. What would the unlevered beta be for the company as determined by the equation? a. 0.02 b. 0.41 c. 1.00 d. 2.00

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