Multiple Choice
El Capitan Foods has a capital structure of 36% debt and 64% equity,its tax rate is 35%,and its beta (leveraged) is 1.40.Based on the Hamada equation,what would the firm's beta be if it used no debt,i.e. ,what is its unlevered beta,bU?
A) 1.03
B) 1.29
C) 0.80
D) 0.88
E) 1.15
Correct Answer:
Verified
Correct Answer:
Verified
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