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pepsi company has no debt now, its beta (unleveraged) is 0.4. Pepsi comapny is willing to change its target capital structure to a debt-to-asset ratio
pepsi company has no debt now, its beta (unleveraged) is 0.4. Pepsi comapny is willing to change its target capital structure to a debt-to-asset ratio of 0.7. what is its leveraged beta (corporate tax rate is 40%)?
a. 1.23
b. .82
c. .96
d. 1.12
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