Question: Consider this case: Globex Corp. has a capital structure that consists of 30% debt and 70% equity. The firms current beta is 1.25, but management

Consider this case: Globex Corp. has a capital structure that consists of 30% debt and 70% equity. The firms current beta is 1.25, but management wants to understand Globex Corp.s market risk without the effect of leverage. If Globex Corp. has a 45% tax rate, what is its unlevered beta?

1.01

1.21

0.91

1.06

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