A company has a gearing ratio of 3:2. You also have the following information: Cost of equity

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A company has a gearing ratio of 3:2. You also have the following information:

Cost of equity capital = 15%

Beta of debt = 2.1

E(rM) =12% and rF = 6%

What is the company's asset beta?

Related Book For answer-question

Analysis for Financial Management

ISBN: 978-0077861780

11th edition

Authors: Robert Higgins

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Posted Date: May 04, 2023 05:01 AM

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A company has a gearing ratio of 3:2. You also have the following information: Cost of equity

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To calculate the asset beta of the company we first need to calculate the equity beta The equity bet... View the full answer

Analysis for Financial Management

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