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Levering beta formula^B levered=^B unlevered[1 + (1 - tax)D/E] beta (levered)/1 + (1 - tax rate) Times (Debt/Equity) BetaL = BetaU* (1 + D/E) What

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Levering beta formula^B levered=^B unlevered[1 + (1 - tax)D/E] beta (levered)/1 + (1 - tax rate) Times (Debt/Equity) BetaL = BetaU* (1 + D/E) What is the rationale for using each one of the two formulas? Which one would you go with? Why

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