Question
Saber Corp. is 35% debt-financed. Before it took on any debt, Saber had a beta of 1.15. The beta of Saber's debt is 0.16. What
Saber Corp. is 35% debt-financed. Before it took on any debt, Saber had a beta of 1.15. The beta of Saber's debt is 0.16. What is the beta of Saber equity?
a. 1.22
b. 1.33
c. 1.44
d. 1.55
e. 1.66
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Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
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