Estimate the beta for our firm if projects have alike betas


A comparable firm (in a comparable business) has an equity beta of 2.5 and a debt/asset ratio of 2/3. The debt is almost risk-free. Estimate the beta for our firm if projects have alike betas, but our firm will carry a debt/asset ratio of 1/3.

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Finance Basics: Estimate the beta for our firm if projects have alike betas
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