Question
Relever Inc. has a debt-to-equity (D/E) ratio of 0.2; its target D/E is 2.0. Relever currently has an estimated beta of 1.6. Relever's estimated tax
Relever Inc. has a debt-to-equity (D/E) ratio of 0.2; its target D/E is 2.0. Relever currently has an estimated beta of 1.6. Relever's estimated tax rate is 39 percent. What is the estimate of Relever's beta at its target D/E?
Relever's beta at its target (D/E)* of 2.0 is estimated to be...
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How Finance Works
Authors: Mihir Desai
1st Edition
1633696707, 978-1633696709
