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The levered beta is? Suppose BetLev Inc. has a capital structure with 61 percent debt and 39 percent equity, a (levered) beta of 1.32, and
The levered beta is?
Suppose BetLev Inc. has a capital structure with 61 percent debt and 39 percent equity, a (levered) beta of 1.32, and a corporate tax rate of 30 percent. Estimate the unlevered beta of BetLev. Now suppose BetLev wishes to have a target capital structure of 52 percent debt and 48 percent equity. What will be its levered beta at the target capital structure? The unlevered beta is (Round to three decimal places.)Step by Step Solution
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