The Market Value of a Firm's Equity Is $26 Million

question 57

Multiple Choice

The market value of a firm's equity is $26 million and the market value of its debt is $16 million. The equity beta is 0.85 and the beta of the firm's debt is 0.0. What is the firm's asset
Beta? Round your answer to the nearest hundredth.

• A)1.03
• B)0.80
• C)0.53
• D)0.73

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