I have tried this question before anddidn't get the correct answer but was very close. Old question:Katy's
Question:
I have tried this question before anddidn't get the correct answer but was very close.
Old question:Katy's Kitten Emporium (KKE) is a thriving pet store business. You would like to understand the market risk of the KKE and are looking to find itsBeta of the Assets. KKE'sBeta of Equity is1.7, the beta of debt is0.2, andthe tax rate is 29%. If KKE is financed 51% by equity,what is the Beta of Assets?
Correct Answer 1.09
Would you please just help me figure out how answer the following new question.
New question:Katy's Kitten Emporium (KKE) is a thriving pet store business. You would like to understand the market risk of the KKE and are looking to find itsBeta of the Assets. KKE'sBeta of Equity is2.7, the beta of debt is0.5, andthe tax rate is 28%. If KKE is financed 29% by equity,what is the Beta of Assets? (please show at least two decimal places)