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Question 17 4 pts Murray Corp. has historically operated as a single-segment firm. However, the company is considering diversifying its portfolio of investments by launching
Question 17 4 pts Murray Corp. has historically operated as a single-segment firm. However, the company is considering diversifying its portfolio of investments by launching a project in an emerging industry. This project would be financed with a debt-equity ratio of 1. The new industry is currently comprised of only two competing firms. The first competitor has a levered beta of 1.8 and a debt-equity ratio of 0.9, while the second has a levered beta of 1.6 and a debt-equity ratio of 0.4. All three companies are subject to a corporate tax rate of 26%. Which of the following represents the most appropriate levered beta for Murray's proposed project? O 2.52 2.01 1.16 2.96 1.61
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