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Problem 2: a. AIT Family Industries, Inc. has a beta = 1.20 and its tax rate is 21%. If the company is financed with 25%

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Problem 2: a. AIT Family Industries, Inc. has a beta = 1.20 and its tax rate is 21%. If the company is financed with 25% debt, what is its unlevered beta? b. JM West Co. raised $200 million in new debt and used this to buy back stock. After the recap, JM West's stock price is $7.50. If had 70 million shares of stock before the recap, how many shares does it have after the recap

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