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What is the beta for a firm with debt to equity ratio of 1/2 if a similar firm with 40% debt and 60% equity has

What is the beta for a firm with debt to equity ratio of 1/2 if a similar firm with 40% debt and 60% equity has levered beta of 1.5? Assume corporate tax rate is 35%.
  • A. 1.55
  • B. 1.73
  • C. 1.15
  • D. 1.05
  • E. 1.39

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