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Please help me find the unlevered beta and levered beta Suppose BetLev Inc. has a capital structure with 70 percent debt and 30 percent equity,
Please help me find the unlevered beta and levered beta
Suppose BetLev Inc. has a capital structure with 70 percent debt and 30 percent equity, a (levered) beta of 1.24, and a corporate tax rate of 30 percent. Estimate the unlevered beta of BetLev. Now suppose BetLev wishes to have a target capital structure of 49 percent debt and 51 percent equity. What will be its levered beta at the target capital structure? The unlevered beta is . (Round to three decimal places.)
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