Multiple Choice
A firm is valued at $8 million and has debt of $2 million outstanding. The firm has an equity beta of 1.5 and a debt beta of .60. The beta of the overall firm is:
A) 0.600.
B) 1.155.
C) 1.275.
D) 1.500.
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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