Bailey and sons has a levered beta of 110 its capital


Bailey and Sons has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would Bailey's beta be if it used no debt, i.e., what is its unlevered beta?

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Finance Basics: Bailey and sons has a levered beta of 110 its capital
Reference No:- TGS0618518

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