Question: A frm is considering a change to its capital structure Current debt- $250,000 Current equity $750,000 Current beta 1 083 Unlevered beta 0 866 Risk-free
A frm is considering a change to its capital structure Current debt- $250,000 Current equity $750,000 Current beta 1 083 Unlevered beta 0 866 Risk-free rate-50% Market risk prem um-6 0% . The firms tax rate 25% . Currenty. CAPM is 115% * What would the tem's beta be it it increased its dubt to $300,000 Select one 1126 b 1 245 c1083 d 1.191 e 1 000 Assume Greshak Corp undortakes a plan to move toward ts optmal capital stracture by issuing more debt The conesponding ncrease in the company's dobt rato wil typically have no effect on Select one A Business nsk D Markt E The fires beta
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