1.You performed a regression analysis using 60 months of data comparing return for your subject company to that of the S&P 500. The slope of the regression line is 0.4872. Use the Blume method to calculate an adjusted beta. (Enter your answer as a number with four decimal places, like this: 0.1234)

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2.Use Hamada's equation to find the unlevered beta (_U) given the following:

Levered beta (_E) = 0.92

Weight of debt (D) = 37.00%

Tax rate (t) = 25.00%

(Enter your answer as a number with four decimal places, like this: 9.1234)

3.Macroeconomic factor models consider economic variables which affect the expected future cash flows of companies to determine the appropriate discount rate.

True or False