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Information on three firms is in the table below. Assume that you want to use firms A and B to represent the industry in order

Information on three firms is in the table below. Assume that you want to use firms A and B to represent the industry in order to predict the appropriate beta for firm C. Use the Hamada equation to compute the missing value in the table.

Firm Levered Beta D-E ratio
A 1.5 1.2
B 1.8 1.9
C ?? 0.8

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