By regression analysis using stock return data

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Reference no: EM131562828

By regression analysis using stock return data, the raw beta is estimated to be 1.4. The debt to equity (D/E) ratio has been 0.6. However, the firm will change the D/E to the target 0.9. What would be the equity beta (levered beta) under the target D/E ratio? Tax rate is 35%.

Reference no: EM131562828

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By regression analysis using stock return data : By regression analysis using stock return data, the raw beta is estimated to be 1.4. What would be the equity beta (levered beta) under the target D/E ratio?

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