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Q1/2 Thumbs up for Right Answer 1. Scotch's beta is 1.8 and its tax rate is 25%. If it is financed with 60% debt, what

Q1/2 Thumbs up for Right Answer

image text in transcribed 1. Scotch's beta is 1.8 and its tax rate is 25%. If it is financed with 60% debt, what is its unlevered beta? 2. Bourbon Enterprise has an unlevered beta of 0.70 . Bourbon is financed with 40% debt and has a levered beta of 1.4. If the risk-free rate is 5.0% and the market risk premium is 6%, how much is the additional premium that Bourbon's shareholders require to be compensated for financial risk

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