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The beta of an all-equty firm is 1.2. If the firm changes its capital structure to 50% debt and 50% equity using 8% debt finanang,

The beta of an all-equty firm is 1.2. If the firm changes its capital structure to 50% debt and 50% equity using 8% debt finanang, what will be the beta of tr levered firm? The beta of debt is 0.2. (Assume no taxes.) A) 1.2 8) 2.4 C) 2.2 D) 1.8

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