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Question 4 (8 points) Assume company XYZ has a leverage ratio Lequal to 1. Its assets consist of 25 in liquid short-term securities that have
Question 4 (8 points) Assume company XYZ has a leverage ratio Lequal to 1. Its assets consist of 25 in liquid short-term securities that have a beta of B. = 1.5. Furthermore, the firm has 75 in property, plant and equipment with a beta of Bppie = 0.4. Assume its debt to be risk-free. What is XYZ's equity beta
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