Nbspyou are trying to find out the equity beta levered beta


 You are trying to find out the equity beta (=levered beta) for an unlisted firm. There are two listed firms with debt to equity ratio [D/E) of 0.8 and 1.2, respectively. The levered betas of the two firms are 1.3 and 1.7, respectively. The corporate tax rates are 35% for both. The unlisted firm has the Equity/Value ratio of 1.0. What is the equity beta of the unlisted firm? 

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Financial Management: Nbspyou are trying to find out the equity beta levered beta
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