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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.
\begin{tabular}{|l|l|l|} \hline Firm & Levered Beta & D-E ratio \\ \hline A & 1.5 & 1.2 \\ \hline B & 1.8 & 1.9 \\ \hline C & ?? & 0.8 \\ \hline \end{tabular}
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