According to information on the stock market, the 1-year unlevered beta of the company stock is 1.89. During 2018, the company’s reported long-term borrowings, current portion of long-term liabilities and short-term borrowings stood at $0.08 billion, $0.03 billion and $12.35 billion respectively as on balance sheet. Calculate the levered beta of Samsung Electronics Co. Ltd if the current market capitalization is $259.81 billion, while the applicable corporate tax rate in South Korea is 25%.

Levered Beta = Levered Beta * [1 + (1 – Tax Rate) * (Debt / Equity)]

Answer rating: 100% (QA)

To calculate the levered beta of Samsung Electronics Co Ltd we need to use the formula Levered Be... View the full answer