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QUESTION 17 Assume a firm has $2 billion in debt and $2 billion in equity, a beta of 1.8 and a tax rate of.2. Its

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QUESTION 17 Assume a firm has $2 billion in debt and $2 billion in equity, a beta of 1.8 and a tax rate of.2. Its cost of borrowing is 5%. The riskless return is 2% and the expected equity risk premium is 5% What is the firm's unlevered beta? 0 1 1.4 O 1.5 0.8

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