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

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Definitions:

Endocrine System

A network of glands and organs that produce, store, and release hormones into the bloodstream to control many bodily functions.

Diabetes

A group of metabolic diseases characterized by high blood sugar levels over a prolonged period due to insulin production issues or the body's response to insulin.

Graves' Disease

An autoimmune disorder that leads to overactivity of the thyroid gland (hyperthyroidism), causing symptoms like weight loss, rapid heartbeat, and bulging eyes.

Urinary System

The bodily system responsible for the production, storage, and elimination of urine, including the kidneys, bladder, and urethra.