Question
Your firm is planning to invest in a new project. General Electric (GE) is a firm that specializes in this line business. GE's share price
Your firm is planning to invest in a new project. General Electric (GE) is a firm that specializes in this line business. GE's share price is currently $15.00 and it has 160M shares outstanding. GE's equity beta is 1.8. Its debt level is $2.2B while its beta of debt is .1.
- What is your estimate of GE's equity weight?
- What is your estimate of GE's debt weight?
- What is your estimate of GE's asset beta?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
