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questions 31 and 32 please! A Sompany has an unlevered beta of 0.5 , a tax rate of 40%, and a debt to equity ratio

questions 31 and 32 please! image text in transcribed
A Sompany has an unlevered beta of 0.5 , a tax rate of 40%, and a debt to equity ratio of 2 to 1 . According to the Hamada equation, what is its beta? 0.75 22 0.5 1.1 QUESTION 32 Which is a mistake made in estimating the cost of capital? Using the acoounting book value capital structure rather than the target capital structure Having the expected return on the stock market move up and down with the risk free rate (leaving the market risk premium constant). Using the market yields to maturity on outstanding bonds as debt cost of capital

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