Question
Hartman Motors has $11 million in assets, which were financed with $6.6 million of debt and $4.4 million in equity. Hartman's beta is currently 1.75,
Hartman Motors has $11 million in assets, which were financed with $6.6 million of debt and $4.4 million in equity. Hartman's beta is currently 1.75, and its tax rate is 30%. Use the Hamada equation to find Hartman's unlevered beta, bU. Do not round intermediate calculations. Round your answer to two decimal places.
bU =
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
