Unlevered Beta Counts Accounting has a beta of 1.55. The tax rate is 40%, and Counts...

Question

Question

Unlevered Beta Counts Accounting has a beta of 1.55. The tax rate is 40%, and Counts is financed with 50% debt. What is Count

Answer 1

Answer #1

Levered Beta = Unlevered Beta x (1 + ((1 – Tax Rate) x (Debt/Equity)))

1.55 = Unlevered Beta*(1+((1-0.4)*(1)))

Unlevered Beta = 0.97

Answer 2

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