The Template Corporation Has an Equity Beta of 1

question 29

Multiple Choice

The Template Corporation has an equity beta of 1.2 and a debt beta of .8.The firm's market value debt to equity ratio is .6.Template has a zero tax rate.What is the asset beta?

• A)0.70
• B)0.72
• C)0.96
• D)1.04
• E)1.05

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