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Problem 5.4 (10 pts) The capital structure of company A is 32,000 equity, 42,000 debt, and 5,000 cash. Beta is 1 for equity and 0.08

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Problem 5.4 (10 pts) The capital structure of company A is 32,000 equity, 42,000 debt, and 5,000 cash. Beta is 1 for equity and 0.08 for debt. The company A uses all cash to pay off the debt. Assume the debt beta does not change. Find the change in the company's equity beta

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