Question
The equity beta of a company with debt-equity ratio of 3 is 2.8. What would be the beta of this company if it goes all-equity
The equity beta of a company with debt-equity ratio of 3 is 2.8. What would be the beta of this company if it goes all-equity firm? (the tax rate is equal to 40%)
Group of answer choices (q19)
0.8
0.9
1
1.2
None of the others
1.1
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International Money and Finance
Authors: Michael Melvin, Stefan C. Norrbin
8th edition
978-8131234136, 123852471, 978-0123852472
