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The average beta of a publicly traded company in an industry is 1.50 and the average debt/equity ratio is 15%. A firm in the industry
The average beta of a publicly traded company in an industry is 1.50 and the average debt/equity ratio is 15%. A firm in the industry currently has no debt, and does not intend to borrow for the foreseeable future. The tax rate is 25%. Estimate the value of the firms beta.
Group of answer choices
A.1.45
B.1.15
C.1.25
D.1.35
E.None of the above
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