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Use the following information for the following questions. Company Comp1 Comp 2 Comp3 Comp 4 Target Company Beta D/E 0.85 0.54 0.68 1.2 0.69
Use the following information for the following questions. Company Comp1 Comp 2 Comp3 Comp 4 Target Company Beta D/E 0.85 0.54 0.68 1.2 0.69 0.74 1.81 2.08 1.25 Corporate tax Rate 20% 21% 24% 25% 22% a. Taking the tax rate into consideration please calculate asset betas for all the comparable companies. What is the average asset beta for the trading comps for this target firm? b. What is the levered beta (equity beta) for the target company?
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