Question
Question 6 (2 points) XYZ currently has a capital structure of 40% debt and 60% equity. XYZ's levered beta is 2.0 under its current capital
Question 6 (2 points)
XYZ currently has a capital structure of 40% debt and 60% equity. XYZ's levered beta is 2.0 under its current capital structure. The firm's tax rate is 40%. What is the value of the XYZ's unlevered beta?
show your answer to 1 decimal place (example: a beta of 1.2)
Question 6 options:
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
