Which of the Following Equations Would NOT Be Appropriate to Use

question 1

Multiple Choice

Which of the following equations would NOT be appropriate to use in a firm with risky debt?

• A) β_E = β_U + (β_U - β_D)
• B) β_U = β_E+ (β_U - β_D)
• C) β_E = β_U + β_U
• D) β_U = β_E + β_D

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