Computing the beta coefficient of a common stock

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Problem:

XYZ's unlevered beta coefficient is 0.30, its corporate income tax rate equals 40%, and its target market value capital structure is 80% interest‐bearing debt and 20% common stock equity. Compute the levered beta coefficient for XYZ's common stock.

Additional Information:

This question is basically belongs to the Finance as well as it discusses about computing the beta coefficient of a common stock.

Reference no: EM13826353

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