The Tenplen Corporation Has an Equity Beta of 1

question 23

Multiple Choice

The Tenplen Corporation has an equity beta of 1.2 and a debt beta of.8. The firm's market value debt to equity ratio is.6. Tenplen has a zero tax rate. What is the asset beta?

• A) 0.70.
• B) 1.04.
• C) 1.05.
• D) 0.96.
• E) 0.72.

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Definitions:

Effect Size

A quantitative measure describing the strength of a relationship between two variables.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean or average.

Dollar Value

The worth of something expressed in terms of the amount of money it can be exchanged for.

Kirkpatrick's Model

A method for assessing the effectiveness of training programs through four distinct levels: Reaction, Learning, Behavior, and Results, emphasizing the importance of evaluating multiple aspects of training.