Enterprises Has a Levered Beta of 1

question 3

Multiple Choice

Enterprises has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%.What would Ang's beta be if it used no debt, i.e., what is its unlevered beta?

• A)0.64
• B)0.67
• C)0.71
• D)0.75
• E)0.79

---

Definitions:

Lev Vygotsky

A prominent Russian psychologist known for his theory on social development and the concept of the Zone of Proximal Development, emphasizing the role of social interaction in cognitive development.

Behavior Control

The manipulation or guidance of an individual's actions through various techniques, such as reinforcement or punishment, to achieve desired behavior.

Young Scientist

An individual, typically with a burgeoning interest and background in a scientific discipline, who is at the early stages of their research career.

Young Apprentice

A term for someone, typically younger, learning a skill or trade under the guidance of a more experienced mentor.