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QUESTION 2 Hank Aerospace is trading at a price of $71. In the last 10K, the company has book value per share of $6 and

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QUESTION 2 Hank Aerospace is trading at a price of $71. In the last 10K, the company has book value per share of $6 and 5 million shares of common stock outstanding. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $65 million and a coupon of 6 percent and sells for 96 percent of par. The second issue has a face value of $45 million and a coupon of 7 percent and sells for 105 percent of par. The first issue matures in 21 years, the second in 5 years. Assume a systematic risk of 1.2%. What is the overall unlevered beta of Hank Aerospace? (Enter only TWO decimal points.) QUESTION 2 Hank Aerospace is trading at a price of $71. In the last 10K, the company has book value per share of $6 and 5 million shares of common stock outstanding. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $65 million and a coupon of 6 percent and sells for 96 percent of par. The second issue has a face value of $45 million and a coupon of 7 percent and sells for 105 percent of par. The first issue matures in 21 years, the second in 5 years. Assume a systematic risk of 1.2%. What is the overall unlevered beta of Hank Aerospace? (Enter only TWO decimal points.)

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