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Question 16 A firm has a debtlequity ratio of 0.60 and a tax rate of 40.0 percent. Its equity beta is 1.20, while its asset

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Question 16 A firm has a debtlequity ratio of 0.60 and a tax rate of 40.0 percent. Its equity beta is 1.20, while its asset (unlevered) beta is 0.8823. Given a risk-free rate of 3.0 percent and a return on the market of 13 percent, the equity has a required rate of return of 15.00 percent. As you can calculate, 3.0%15.00%=20.00% of the investors required rate of return comes from the risk -rree rate compensated for business risk and financial risk Enter your answer is decimal format, rounded to three decima places. Forecis

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