Compute the levered bheta

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Reference no: EM13972105

We have the Washington firm on which we have the following information. Its bheta unlevered is 3, its D/E is 4/1, and its tax rate is .3. Additionally we know that the default free rate is 5% and the stock market has returned 11 % over a long period of time. Compute the levered bheta. Expound on what kind of firm Washington is. Derive the price.

Reference no: EM13972105

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