Asset beta of a company


What is the asset beta of a company which has the following characteristics? Equity beta 1.2, debt beta 0.2, book value of equity $3.0m, book value of debt $1.5m, market value of equity $4.0m, market value of debt $1.5m. The market risk premium is estimated to be 8%

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Finance Basics: Asset beta of a company
Reference No:- TGS039077

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