A firm is valued at $6 million and has debt of $2 million outstanding. The firm has
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Question:
A firm is valued at $6 million and has debt of $2 million outstanding. The firm has an equitybeta of 1.8 and a debt beta of .42. The beta of the overall firm is:
A. 1.00.
B. 1.11.
C. 1.20.
D. 1.34.
E. It is impossible to determine with the information given.
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
Posted Date: