zero growth is expected.

a$.$ Estimate the beta of an unlevered firm in the commuter airline business based on Jaxair's market$-$determined beta. Do not round intermediate calculations. Round your answer to three decimal places.

$1\mathrm{.}590$

$20\mathrm{.}540\%$

Air Tampa's $r_s$ for $$2$ million debt:

Air Tampa's $r_s$ for $$4$ million debt:

Air Tampa's $r_s$ for $$6$ million debt:

to two decimal places.

$\%$

Compare this with your corresponding answer to Part c$.($Assume that growth is zero and no personal taxes for the MM$.)$

The levered beta will $-$ Select$-,$ if EBIT remains constant.