By regression analysis using stock return data the raw beta


By regression analysis using stock return data, the raw beta is estimated to be 1.4. The debt to equity (D/E) ratio has been 0.6. However, the firm will change the D/E to the target 0.9. What would be the equity beta (levered beta) under the target D/E ratio? Tax rate is 35%.

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Financial Management: By regression analysis using stock return data the raw beta
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