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If the unlevered beta is 1.4, then what is the levered beta of a firm that is expected to maintain a constant debt to equity
If the unlevered beta is 1.4, then what is the levered beta of a firm that is expected to maintain a constant debt to equity ratio of 0.5 in the foreseeable future. Beta debt can be assumed to be negligible and the prevailing tax rate is 15%.
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