Yoder dairy has a capital structure of 40 debt and 60


Yoder Dairy has a capital structure of 40% debt and 60% equity with a tax rate of 35%. Yoder's beta (leveraged) is 1.25. What would the firm's beta be if it switched to a capital structure that used no debt, i.e., what is its unlevered beta based on the Hamada equation?

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Finance Basics: Yoder dairy has a capital structure of 40 debt and 60
Reference No:- TGS0618105

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