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has a capital structure of 40% debt and 60% equity, its tax rate is 25%, and its current beta is 1.50. Based on the Hamada

has a capital structure of 40% debt and 60% equity, its tax rate is 25%, and its current beta is 1.50. Based on the Hamada equation, what would the firm's beta be if it used no debt (unlevered beta)?

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