What would the firms beta be if it switched to a capital

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Yoder Dairy has a capital structure of 40% debt and 60% equity with a tax rate of 35%. Yoder's beta (leveraged) is 1.25. What would the firm's beta be if it switched to a capital structure that used no debt, i.e., what is its unlevered beta based on the Hamada equation?

Reference no: EM13569511


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