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You've been tasked with estimating the cost of capital for a particular project. Among other metrics you need to estimate the project's beta. You find
You've been tasked with estimating the cost of capital for a particular project. Among other metrics you need to estimate the project's beta. You find out that the following firms specialize in projects like yours. Firm Equity Debt Debt to Name Beta Beta Equity Ratio ORLY 0 0 1.1 PEP 1.4 0.2 1 AZO 2.8 0.5 1.5 A: What is the unlevered beta for ORLY? B: What is the unlevered beta for PEP? C: What is the unlevered beta for AZO? A: Choose... B: Choose... C: Choose
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