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    RDJ Inc Has an Asset Beta of 0
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RDJ Inc Has an Asset Beta of 0

Question 120

Question 120

Multiple Choice

RDJ Inc. has an asset beta of 0.95. Its current capital structure is 60% debt, 40% equity. What is the firm's equity beta? Ignore taxes.


A) 0.380
B) 1.243
C) 1.583
D) 1.875
E) 2.375

Correct Answer:

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