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Question 29 Wishbone Inc. has a capital structure consisting of $100M of debt and $300M of equity. The cost of debt is 9%. The equity

Question 29

"Wishbone Inc. has a capital structure consisting of $100M of debt and $300M of equity. The cost of debt is 9%. The equity beta is 1.2, the expected market return is 15% and the risk-free rate is 5%. Find the beta of debt."

0.4

0.2

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0.1

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