Question: KYM Tech, Inc. has been operating for several years. Its market-determined beta is 2.0, its market value capital structure is 80 percent debt, and its
KYM Tech, Inc. has been operating for several years. Its market-determined beta is 2.0, its market value capital structure is 80 percent debt, and its federal-plus-state tax rate is 50 percent. The risk-free rate is 10.0 percent and the required rate of return on the market is 15.0 percent. What is Old Air's asset (unlevered) beta? The Risk premium, Financial Risk premium?
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