Question: Problem 25 (10 points) You'd like to estimate the equity beta of a firm that is not publicly traded. The capital structure of this company

Problem 25 (10 points) You'd like to estimate the equity beta

Problem 25 (10 points) You'd like to estimate the equity beta of a firm that is not publicly traded. The capital structure of this company is 50% debt and 50% private equity. You construct a pool of publicly traded firms operating the same type of business. Their capital structure is 20% debt and 80% equity, with an average levered beta of 1.2. Estimate the levered beta of the private firm

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