Question: 7 min to solve it please 5:00 Flag question AIPEC Enterprises operates in two businesses: it gets $100 million in revenues from food processing and

 7 min to solve it please 5:00 Flag question AIPEC Enterprises

7 min to solve it please

5:00 Flag question AIPEC Enterprises operates in two businesses: it gets $100 million in revenues from food processing and $50 million in revenues from chemicals. You have the following information on the two businesses: Unlevered Beta FIRM VALUE/Sales Food 0.70 1.53 Chemicals 1.20 1.4 if AIPEC Enterprises has a debt to equity ratio of 66.67%, estimate the levered beta for AIPEC. (Marginal tax rate is 40%) Select one: a 1.11 b. 1.40 C. 1.20 d. 1.33 e 1.85 1.1.35

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