Q2

Ang Enterprises has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would Ang's beta be if it used no debt, i.e., what is its unlevered beta?

Select one:

a. 0.67

b. 0.79

c. 0.75

d. 0.64

e. 0.71