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Which of the Following Equations Would NOT Be Appropriate to Use

Question 85

Multiple Choice

Which of the following equations would NOT be appropriate to use in a firm with risky debt?


A) βE = βU + βU
B) βU = βE + (βU - βD)
C) βE = βU + (βU - βD)
D) βU = βE + βD

Correct Answer:

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