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: Portugal Telecom has a beta of 0.80 and debt to equity ratio of 15%. Although all the current business of the firm comes from
: Portugal Telecom has a beta of 0.80 and debt to equity ratio of 15%. Although all the current business of the firm comes from phone service, the firm is considering expanding into the internet. If the internet business is going to be 20% of Portugal telecoms future business, estimate the beta for the firm. (You can assume that the debt to equity ratio remains 15% and the tax rate for the firm is 40%)
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