Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 19, 2022

Suppose 46,69% of the capital structure of company ABC is composed by debt and the rest is composed by equity. If the beta of

Suppose 46,69% of the capital structure of company ABC is composed by debt and the rest is composed by equity. If the beta of equity is 1,64 and beta of debt is 0,74, then the unlevered beta of company ABC is? Your answer should have 2 decimal places, for example, if you find as your answer 7.89%, then you should type on the answer box 0,08. Note that you should use "" on your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

SOLUTION We can ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Corporate Finance

Authors: Aswath Damodaran

4th edition

978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931

More Books

Students also viewed these Accounting questions

Question

★★★★★

In 1995, an analysis of the capital structure of Reebok provided the following results on the cost of capital and firm value. This analysis was based on the 1995 EBIT of $420 million and a tax rate...

Answered: 1 week ago

Question

★★★★★

What are the components of the capital structure in the typical MNE? What about MNEs in Japan and Germany? What about a typical firm in your country?

Answered: 1 week ago

Question

★★★★★

Prepare a statement of the capital structure pattern of the Corporation, showing clearly, the number and value of each security and other necessary details. Asiatic Corporation is registered for...

Answered: 1 week ago

Question

★★★★★

The LEGO company is a perfect example of planning. They carefully crafted the name from two phrases into one word. Besides the name, they also planned how they would make the bricks fit into one...

Answered: 1 week ago

Question

★★★★★

Howie Stars produces stars for elementary teachers to reward their students. Howie Stars trial balance on June 1 follows: June 1 balances in the subsidiary ledgers were as follows: Raw Materials...

Answered: 1 week ago

Question

★★★★★

Using the information in Q&A 9.2, calculate the elasticity of demand faced by Apple at the profit maximizing price and quantity using the inverse demand function.

Answered: 1 week ago

Question

★★★★★

3.3 Describe general trends and group differences in the development of identity and self-concept.

Answered: 1 week ago

Question

★★★★★

Politan Company acquired an 80 percent interest in Soludan Company on January 1, 2010. Any portion of Soludans business fair value in excess of its corresponding book value was assigned to...

Answered: 1 week ago

Question

★★★★★

A8. Consider the following context free grammar (CFG) S-> ScX X bcle Find the RIGHTMOST DERIVATION and DRAW its corresponding PARSE TREE for the following input string aabbbccccc (3+2-5 M]

Answered: 1 week ago

Question

★★★★★

BOR CPAs, Inc. is a closely held corporation owned by three stockholders who used the initials of their last names to form the corporations name: Cyrus Bailey, John Ogden, and Samuel Rogers. The...

Answered: 1 week ago

Question

★★★★★

Question 4 5 points Saved XYZ is considering buying a new sterilization system. The new sterilization system would be purchased today for $88,000. It would be depreciated straight-line to $0 over 2...

Answered: 1 week ago

Question

★★★★★

a (400-2a) Figure 1.48 Problem 4 4 m T a A 15 mm- D |-- P-17 kN A round steel bar of a length of 400mm and a diameter of 15mm at the middle portion is subjected to an axial tensile force of 17kN....

Answered: 1 week ago

Question

★★★★★

One of the restrictions in this exercise was that you were not allowed to use loops. All of the functions in this exercise could have been implemented with loops instead of list methods. Which do you...

Answered: 1 week ago

Question

★★★★★

Answer the question in terms of kN for the last picture no need to do the other ones with the solution. In problem 2-23, a round tube section 3 mm thick was one of the options to prevent buckling. If...

Answered: 1 week ago

Question

★★★★★

Question 1 (6 marks) Two cables are attached to a wall by a pin at O with the tensions in the cables adjusted to 450 N and 500 N as shown in the following diagram. 450N 30 500N Use the method of...

Answered: 1 week ago

Question

★★★★★

Many people have argued that the continuum of processes described by Garvin is outdated and does not apply to digital businesses. Very often digital businesses do not have equipment, or raw material,...

Answered: 1 week ago

Question

★★★★★

Briefly explain the accounting treatment for estimated sales returns at the end of an accounting period for which accounts receivable remain outstanding

Answered: 1 week ago

Question

★★★★★

A report from the college dean indicates that for the previous semester, the grade distribution for the Department of Psychology included 135 As, 158 Bs, 140 Cs, 94 Ds, and 53 Fs. Determine what kind...

Answered: 1 week ago

Question

★★★★★

Geotech Inc., which has had a history of high growth and pays no dividends, announces that it will start paying dividends next quarter. How would you expect its stock price to react to the...

Answered: 1 week ago

Question

★★★★★

You have been asked to analyze the capital structure of DASA, an environmental waste disposal firm, and make recommendations on a future course of action. DASA has 40 million shares outstanding,...

Answered: 1 week ago

Question

★★★★★

You are the manager of a pharmaceutical company and are considering what type of laptop computers to buy for your salespeople to take with them on their calls. You can buy fairly inexpensive (and...

Answered: 1 week ago

Question

★★★★★

=+75. Exercise 4 of Chapter 1 presented a sample of n = 153 observations on ultimate tensile strength.

Answered: 1 week ago

Question

★★★★★

=+deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights...

Answered: 1 week ago

Question

★★★★★

=+71. Suppose the smallest distance d between any two successive measurements in an ordered set of data (i.e., measurements sorted from smallest to largest) is 3 units.

Answered: 1 week ago

Previous Question Next Question