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You are tasked with estimating the beta of a government-owner firm, and have found several prices of beta. A comparable company has a listed equity
You are tasked with estimating the beta of a government-owner firm, and have found several prices of beta. A comparable company has a listed equity and debt betas of 1.5 and 0, respectively, but a debt to asset ratio of 0.5. If the firm you are tasked with analyzing has a debt to asset ratio of 0.9, and the debt is risk-free, What is the equity beta of this company
- 0.75
- 7.5
- 3
- 1
- 1;5
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