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:

Eighth Amendment

A provision of the United States Constitution that prohibits the federal government from imposing excessive bail, excessive fines, or cruel and unusual punishment.

Cruel and Unusual Punishment

Punishment that is considered unacceptable due to the suffering, pain, or humiliation it inflicts on the person subjected to it, prohibited by the eighth amendment in the US Constitution.

Deadly Force

The use of force that is likely to cause death or serious bodily harm to another person.

Sexual Assaults

Unwanted or forced sexual acts imposed on someone without their consent.