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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 percent funded by debt. By contrast, the weight of debt in the
subject company's capital structure is only percent. The benchmark's beta is estimated at
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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