If A Ompanyhas A Levered Beta Of 1 1 Its Capital Structure Consists Of 45 Debt A

If a ompany has a levered beta of 1.1, its capital structure consists of 45% debt and 55% equity, and its tax rate is 21%. What would the company’s beta be if it used no debt, i.e., what is its unlevered beta?

  • 0.64
  • 0.67
  • 0.71
  • 0.75
  • 0.79
 
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