Question
With increasing competition, your firm is considering raising more capital by issuing new bonds. This will increase the company's debt to about 42% of capital
With increasing competition, your firm is considering raising more capital by issuing new bonds. This will increase the company's debt to about 42% of capital available. With an unlevered beta of 0.91 and a tax rate of 29%, what is an estimate of the new stock beta after the and issue?
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
