Suppose an all-equity firm has a beta estimated to be


Suppose an? all-equity firm has a beta estimated to be 1.2. 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 35 ?percent? The revised beta estimate is . ?(Round to two decimal? places.)

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Financial Management: Suppose an all-equity firm has a beta estimated to be
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