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 1.3. If RobCo is 71% debt financed, and the rest is equity financed, what is RobCo's equity beta if the tax rate is 29%?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
