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Levered beta estimation Suppose that a benchmark company is identified is 3 0 percent funded by debt. By contrast, the weight of debt in the

Levered beta estimation
Suppose that a benchmark company is identified is 30 percent funded by debt. By contrast, the weight of debt in the
subject company's capital structure is only 45 percent. The benchmark's beta is estimated at 1.4.
a. What is the unlevered beta of the benchmark company?
Round your answer to two decimals
b. What is the levered beta of the subject company?
Round your answer to two decimals
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