Indell stock has a current market value of ($170) million and a beta of 1.80. Indell currently
Question:
Indell stock has a current market value of \($170\) million and a beta of 1.80. Indell currently has risk-free debt as well. The firm decides to change its capital structure by issuing \($35.96\) million in additional risk-free debt, and then using this \($35.96\) million plus another \($13\) million in cash to repurchase stock. With perfect capital markets, what will be the beta of Indell stock after this transaction?
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Step by Step Answer:
To find the beta of Indell stock after the transaction we can use the following formula betatextnew ...View the full answer
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