Question
Relever Inc. has a debt-to-equity (D/E) ratio of 0.2 ; its target D/E is 1.8 . Relever currently has an estimated beta of 1.2 .
Relever Inc. has a debt-to-equity (D/E) ratio of 0.2 ; its target D/E is 1.8 . Relever currently has an estimated beta of 1.2 . Relever's estimated tax rate is 25 percent. What is the estimate of Relever's beta at its target D/E?
Relever's beta at its target (D/E)* of 1.8 is estimated to be . (Round to three decimal places.)
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Fundamentals Of Financial Institutions Management
Authors: Marcia Cornett, Anthony Saunders
1st Edition
0256253676, 9780256253672
