Question
If a ompanyhas a levered beta of 1.1, its capital structure consists of 45% debt and 55% equity, and its tax rate is 21%. What
If a ompanyhas a levered beta of 1.1, its capital structure consists of 45% debt and 55% equity, and its tax rate is 21%. What would the company's beta be if it used no debt, i.e., what is its unlevered beta?
- 0.64
- 0.67
- 0.71
- 0.75
- 0.79
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
