Consider the Following Equation

question 85

Multiple Choice

Consider the following equation:
Β_U =
Β_E +
Β_D
The term β_D in the equation is:

• A)the same as the beta of the firm's assets.
• B)the required return on the firm's equity.
• C)the proportion of the firm financed with equity.
• D)equal to zero if the firm's debt is riskless.

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