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Orion if financed with 23% debt and the rest equity. Orion has an equity beta of 1.38, a debt beta of 0 and a marginal
Orion if financed with 23% debt and the rest equity. Orion has an equity beta of 1.38, a debt beta of 0 and a marginal tax rate of 23%. If Orion issues a debt to repurchase equity so that the new firm is now 45% debt, what will be its new equity beta?( continue to assume the debt beta remains at 0)
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