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If the equity beta is 2 and the debt to asset ratio is 0.5; what should be the unlevered beta? You can assume a 40%
If the equity beta is 2 and the debt to asset ratio is 0.5; what should be the unlevered beta? You can assume a 40% tax rate. Note: the debt-to-asset ratio is different than the debt-to-equity ratio!
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