Brad's Boat Company,a Company in the 40% Tax Bracket,has Riskless

question 41

Multiple Choice

Brad's Boat Company,a company in the 40% tax bracket,has riskless debt in its capital structure which makes up 30% of the total capital structure,and equity is the other 70%. The beta of the assets for this business is .9 and the equity beta is:

• A) 0.54.
• B) 0.90.
• C) 1.13.
• D) 1.20.
• E) 1.49.

---

Definitions:

Abolitionists

Abolitionists were individuals, in the 18th and 19th centuries, committed to the movement to end the slave trade and emancipate slaves, operating in both America and Europe, through advocating, campaigning, and influencing legislative change.

Constitution

The supreme law of the United States, establishing the framework for the federal government and outlining the rights of citizens.

Lane Theological Seminary

A historically significant religious institution in Cincinnati, Ohio, known for its debates on slavery and abolition in the 1830s, which had a profound impact on the anti-slavery movement.

Oberlin College

A private liberal arts college in Oberlin, Ohio, notable for being the first college in the United States to regularly admit female and African American students.