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Debt Beta

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June 16, 2015 at 3:18 am #257196
rishan
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A company has:
Equity Beta : 1.8
Pre tax cost of debt : 3.8%
Gearing (D/D+E) : 40%
Income Tax : 30%
rf rate : 2%
market risk premium : 3%
What is the company’s debt beta?
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