Question
Humana (HUM) is in the health care service industry with a Beta is 0.9 and subject to a tax rate of 40%. HUM has $24.31B
Humana (HUM) is in the health care service industry with a Beta is 0.9 and subject to a tax rate of 40%. HUM has $24.31B of long term debt and according to latest quote has a market capitalization of $80.1B . Given the 10-year Treasury rate at 0.86% and market return is 5% what percentage of HUM risk is attributed to financial risk?
| 13.93% | ||
| 17.22% | ||
| 22.50% | ||
| 19.53% | ||
| 15.40% |
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
