Question 10(1 point)

Heinlein Corporation is financed with 0.5 percent debt and the rest equity.It has a leveraged beta of 1.1 and is subject to a 0.1 corporate tax rate.What is Heinlein's unleveraged beta?

Your Answer:

Question 10 options:

Answer

Question 11(1 point)

Empress Corporation has a capital budget of 140 and and a Net Income of 360. If Empress's target equity fraction is 0.4, what should Empress's dividend be under the residual dividend model?