Suppose betlev inc has a capital structure with 61 percent


Suppose BetLev Inc. has a capital structure with 61 percent debt and 39 percent? equity, a? (levered) beta of 1.31 ?, and a corporate tax rate of 35 percent. Estimate the unlevered beta of BetLev. Now suppose BetLev wishes to have a target capital structure of 51 percent debt and 49 percent equity. What will be its levered beta at the target capital? structure?

The unlevered beta is . ?(Round to three decimal? places.)

The levered beta is . ?(Round to three decimal? places.)

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Financial Management: Suppose betlev inc has a capital structure with 61 percent
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