Question: Use Hamada's equation to find the levered beta (BE) given the following: Unlevered beta (Bu) = 0.89 Weight of debt (D') = 37.00% Tax

Use Hamada's equation to find the levered beta (BE) given the following: Unlevered beta (Bu) = 0.89 Weight of debt (D') = 37.00% Tax rate (t) = 21.00% (Enter your answer as a number with four decimal places, like this: 9.1234) Compute the cost of equity using the CAPM given the following information: Yield on government bonds 2.40% Estimated return on the market = 8.97% Levered beta (B'E)=0.92. (Enter your answer without the percent sign, but show two decimal places. For example, if your answer is 9.12%, enter 9.12)
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