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Suppose the risk-free rate is 7.5% and the market risk premium is 6%. The unlevered beta of the firm is 1.25. If total invested capital

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Suppose the risk-free rate is 7.5% and the market risk premium is 6%. The unlevered beta of the firm is 1.25. If total invested capital is $2,000,000 and total debt is $1,000,000, what is the firm's levered beta? (Assume a 25% corporate tax rate) A. 1.38 B. 1.93 C. 1.76 D. 2.08 bL=bU[1+(1T)(D/E)] E. 2.19

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