Consider the Following Equation: βU = βE

question 9

Multiple Choice

Consider the following equation: βU = βE + βD
The term in the equation is:

• A)the required return on the firm's equity.
• B)the same as the beta of the firm's assets.
• C)equal to zero if the firm's debt is riskless.
• D)the proportion of the firm financed with equity.

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