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QUESTION a. Find the beta of asset of a firm with debt beta of 0.35, equity beta of 1.2 and a 45% debt in its
QUESTION
a. Find the beta of asset of a firm with debt beta of 0.35, equity beta of 1.2 and a 45% debt in its capital structure.
b. Find the beta of equity of a firm with beta of asset of 2.7 and a debt-to-equity ratio of 0.2. Assume debt beta to be 0.
c. Find the beta of equity of a firm with a debt beta of 0.25, asset beta of 1.7 and a debt-to-equity ratio of 0.4.
d. Find the beta of equity of a firm with a debt beta of 0.2, asset beta of 1.4 and a weight of debt of 0.45.
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