Mariah De-Marko works as a financial analyst at Goldman Sachs. One of her daily tasks includes...
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Mariah De-Marko works as a financial analyst at Goldman Sachs. One of her daily tasks includes the calculation of a stock's leveraged beta to determine the effect of leverage on the stock's risk. Currently, De-Marko analyzes a stock with an Unlevered Beta of 1.45, and a debt- to-equity ratio 25%. Also, the company is taxed at 21%. De-Marko calculates the Levered beta formula of the stock Levered Beta- Unlevered Beta *[1 + (1 - tax rate) x (Debt / Equity)] Write a user defined function to compute the Levered Beta. Mariah De-Marko works as a financial analyst at Goldman Sachs. One of her daily tasks includes the calculation of a stock's leveraged beta to determine the effect of leverage on the stock's risk. Currently, De-Marko analyzes a stock with an Unlevered Beta of 1.45, and a debt- to-equity ratio 25%. Also, the company is taxed at 21%. De-Marko calculates the Levered beta formula of the stock Levered Beta- Unlevered Beta *[1 + (1 - tax rate) x (Debt / Equity)] Write a user defined function to compute the Levered Beta.
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def leveredbetaunleveredbeta debtequityratio taxrate levered... View the full answer
Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
Posted Date:
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