Question
You are considering opening a regional chain of fast food restaurants. Runza has a CAPM equity beta of 1.3 and a debt to equity ratio
You are considering opening a regional chain of fast food restaurants. Runza has a CAPM equity beta of 1.3 and a debt to equity ratio of 1.1. If the tax rate is 0.25 and your debt to equity ratio is 1.4, what is the CAPM equity beta of your business?
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Public Finance
Authors: H L Bhatia
30th Edition
9390080258, 978-9390080250
