ABC CoHas an Asset Beta of 1

question 84

Multiple Choice

ABC Co.has an asset beta of 1.05 and a debt beta of 0.8.Target debt-to-equity (D/E) ratio is 0.6.With no taxes,what is the equity beta?

• A)1.20
• B)1.05
• C)0.90
• D)0.65

---

Definitions:

Antianxiety Medications

Drugs prescribed to alleviate symptoms of anxiety disorders and reduce stress.

Medical History

A record of an individual's past health conditions, treatments, surgeries, and other relevant health information.

Recreational Drugs

Substances used for pleasure or leisure purposes, rather than for medical reasons, which may alter mood or consciousness.

Drug Seekers

Individuals who seek prescription drugs for non-medical use or abuse.