Question: 9. Using Ford Motor Co. stock returns and S&P returns, you estimate Ford stock beta to be 3.0. Ford has a D/E ratio of 11.9

9. Using Ford Motor Co. stock returns and S&P returns, you

9. Using Ford Motor Co. stock returns and S&P returns, you estimate Ford stock beta to be 3.0. Ford has a D/E ratio of 11.9 and marginal tax rate of 35%. What is the asset beta (unlevered beta) o Ford? a. 0.23 b. 0.34* C. 1.00 d. 3.00

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