If the firm changes its capital structure such that its


Suppose an all-equity firm has a beta estimated to be 1.3. If the firm changes its capital structure such that its debt-to-equity ratio is now 0.4, what should be the revised beta estimate if it also faces a tax rate of 30 percent The revised beta estimate is nothing. (Round to two decimal places.)

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Financial Management: If the firm changes its capital structure such that its
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