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Safecorp owns and operates grocery stores across the United States. The company currently has a market value of $150 million inclusive of $50 million of

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Safecorp owns and operates grocery stores across the United States. The company currently has a market value of $150 million inclusive of $50 million of debt and $100 million of ordinary shares. The equity beta is 1.20. The company has been restructured by private equity to have a debt to equity (D/E) ratio of 8. If the tax rate is 40% what will be the equity beta after the restructuring

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