AI Computers (AC), a private company, has outstanding bonds with a total market value of $500 million.

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AI Computers (AC), a private company, has outstanding bonds with a total market value of $500 million. Assume that AC has a debt beta of 0.3. The value of AC's equity is $2 billion and its tax rate is 21%.

Find the debt to equity ratio.

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Dec 19, 2023 03:14 AM

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AI Computers (AC), a private company, has outstanding bonds with a total market value of $500 million.

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The debttoequity ratio is calculated as the ratio of the companys total deb... View the full answer

Foundations of Financial Management

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