Question: You are tasked to see how debt financing impacts equity required return for SBC Inc. The unlevered Beta is 0.90 and tax rate is 25%.

You are tasked to see how debt financing impacts equity required return for SBC Inc. The unlevered Beta is 0.90 and tax rate is 25%. The market value of the firm is $400,000,000, while debt is $150,000,000 with equity being the remainder.

Find the D/E ratio
Find the levered Beta for SBC.

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