If the firm were to increase its leverage from 15 billion, Financial Management

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If the firm were to increase its leverage from 15 billion

A Fortune 100 firm is financed with $15 billion in debt and $5 billion in equity. Its historical levered equity beta has been 2.

If the firm were to increase its leverage from $15 billion to $18 billion and use the cash to repurchase shares, what would you expect its levered equity beta to be?

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Financial Management: If the firm were to increase its leverage from 15 billion

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Financial Management: If the firm were to increase its leverage from 15 billion

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