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Suppose a firms business operations mirror movements in the economy as a whole very closelythat is, the firms asset beta is 1. Find the equity
Suppose a firms business operations mirror movements in the economy as a whole very closelythat is, the firms asset beta is 1. Find the equity beta for this firm for debtequity ratios of 0, 1.3, 5.3, and 17.
Debt-Equity Ratio | Equity Beta |
0 | |
1.3 | |
5.3 | |
17 |
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