Slippery Slope Roof Contracting Has an Equity Beta of 1

question 38

Multiple Choice

Slippery Slope Roof Contracting has an equity beta of 1.2, capital structure with 2/3 debt, and a zero tax rate. What is their asset beta?

• A) 1.8.
• B) 0.40.
• C) 0.72.
• D) 1.2.

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Definitions:

Civil Liberties

Personal freedoms safeguarded legally against unfair intrusions by the government or others.

Joseph McCarthy

An American politician who served as a U.S. Senator from Wisconsin and is best known for his anti-communist activities and the resulting "McCarthyism" during the early 1950s.

Voting Rights Act

A landmark piece of federal legislation in the United States that prohibits racial discrimination in voting.

1965

A significant year marked by events like the passage of the Voting Rights Act in the United States, aimed at overcoming legal barriers at the state and local levels that prevented African Americans from exercising their right to vote.