A corporation has an equity beta of 1.2 and a debt beta of .8. The firm’s...
Homework Answers
a. 0.70
b. 0.72
c. 0.96
d. 1.04
e. 1.05
Answer: e
Feedback: .8(.6/1.6) + 1.2(1/1.6) = 1.05
Difficulty level: Medium
Topic: ASSET BETA
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A corporation has an equity beta of 1.2 and a debt beta of .8. The
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