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For a Levered Firm, Beta of Equity (BE) Is Equal

Question 58

Multiple Choice

For a levered firm, beta of equity (bE) is equal to:

A) bE = bA
B) bE = bA + (D/E) * [bA - bD]
C) bE = bA + (D/(D + E) ) * [bA - bD]
D) None of the above

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