Question
You are considering opening a regional chain of fast food restaurants. Runza has a CAPM equity beta of 1.1 and a debt to equity ratio
You are considering opening a regional chain of fast food restaurants. Runza has a CAPM equity beta of 1.1 and a debt to equity ratio of 1.1. If the tax rate is 0.23 and your debt to equity ratio is 1.7, what is the CAPM equity beta of your business?
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Contemporary Financial Management Fundamentals
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
1st Edition
0324015771, 9780324015775
