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The average sector levered beta for Automobile business is 1.6. The average debt equity ratio for the sector is 30% and the tax rate in
The average sector levered beta for Automobile business is 1.6. The average debt equity ratio for the sector is 30% and the tax rate in the country is 30%. If VVS motors has a debt equity ratio of 40%, what is its levered beta (fundamental beta)? You may assume that Automobile companies have similar cash ratios (No need to adjust for cash)
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