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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