Etsy has an equity beta of 1.61 with a D/E ratio (leverage) of 1.2. As an analyst
Fantastic news! We've Found the answer you've been seeking!
Question:
Etsy has an equity beta of 1.61 with a D/E ratio (leverage) of 1.2. As an analyst in an investment bank, I am preparing an IPO of a new similar company that will have a higher D/E ratio of 1.5. Both companies have a tax rate of 30%. What is the Beta of the NEW Company?
Expert Answer:
Related Book For 
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
