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If you regress the stock return for a publicly traded company on the S&P 500, you get a regression coefficient of 1.7. The companies has
If you regress the stock return for a publicly traded company on the S&P 500, you get a regression coefficient of 1.7. The companies has 17 million in bonds outstanding, and 36.2 million in shares outstanding. Assume that the company's marginal tax rate is 0.32. Use Hamada's equation to calculate the unlevered beta.
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