Multiple Choice
The Delta Company has a capital structure of 20% risky debt with a β of .9 and 80% equity with a β of 1.7. Their current tax rate is 34%. What is the β for Delta Company?
A) 0.59
B) 0.82
C) 1.06
D) 1.49
E) 1.54
Correct Answer:
Verified
Correct Answer:
Verified
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