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Your firm has a debt-to-asset ratio of 25% and a beta of 112. The firm faces a corporate tax rate of 28%. You are considering

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Your firm has a debt-to-asset ratio of 25% and a beta of 112. The firm faces a corporate tax rate of 28%. You are considering a recapitalization to increase the debt-to-asset ratio to 37%. Use the Hamada Relationship to estimate the betas of the unlevered firm and at the new higher debt capital structure. (Do not round Intermediate calculations and round your answers to 2 decimal places. eg. 0.87.) What is the unlevered beta? | What is the beta at the new capital structure

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