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    Exam 12: Designing an Optimal Capital Structure
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    Plastic Products Inc
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Plastic Products Inc

Question 13

Question 13

Multiple Choice

Plastic Products Inc.has a levered beta of 1.30,a debt-equity ratio of 0.50,and a tax rate of 40%.What is the value of the firm's unlevered beta?


A) 0.70
B) 1.00
C) 1.30
D) 1.60

Correct Answer:

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