Mary has calculated the cost of equity for a company to be 7.66% using a government bond rate of 2.67% and market return rate of 9.07%. Mary has also calculated the Group's after tax cost of capital to be 6.62%. The after tax cost of debt is 2.45%. If the fundamental beta is the same as the historical beta obtained using the CAPM, what is the unlevered beta for the Group?

Answer rating: 100% (QA)

To calculate the unlevered beta we need to first find the levered beta of the Group which ... View the full answer