Business
Business, 19.08.2021 22:50, raymondanthony6567

Assume Control Corp has 0% in their capital structure and has a tax rate of 25%. Their current Beta is 0.65. Management now decides to increase their debt load and will result in a debt/equity ratio of 0.40. Given this change, what is the new Beta of the firm given this added leverage? a. 0.65
b. 0.845
c. 0.729
d. 1.03

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Answers: 1

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Assume Control Corp has 0% in their capital structure and has a tax rate of 25%. Their current Beta...

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