Question
RobCo is a company that makes robots for a variety of applications. A similar company, Cyberdyne Industries, is 100% equity and has a beta of
RobCo is a company that makes robots for a variety of applications. A similar company, Cyberdyne Industries, is 100% equity and has a beta of 1.0. If RobCo is 59% debt financed, and the rest is equity financed, what is RobCo's equity beta if the tax rate is 23%? Please give your answer to two decimal places.
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
