Question: Using the fact pattern below, what is the Target's Re - levered Beta? Observed Comp Beta Market cap Net Debt Tax Rate Comp 1 0

Using the fact pattern below, what is the Target's Re-levered Beta? Observed Comp Beta Market cap Net Debt Tax Rate
Comp 10.21260.035.025.0%
Comp 20.65350.015.016.0%
Comp 30.3541.010.025.0%
Comp 40.55175.0(5.0)21.0%
Comp 50.5880.014.025.0%
Comp 60.49250.055.026.0%
Target Capital Structure Considerations
Marginal Tac Rate 21.0%
Net debt/equity 15.0%

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