AnonymousLizard52303
10.06.2021 •
Business
The Boat Company has a capital structure of 30 percent riskless debt and 70 percent equity. The assumed tax rate is 23 percent. If the asset beta is .9, what is the equity beta?
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Ответ:
0.68
Explanation:
Using the measures given, the equity beta can be calculated as:
Equity beta = Asset beta * (1 + (1 - Tax rate) * (Debt/Equity)
= 0.9 * ( 1 + ( 1 - 23%) * (30% / 70%)
= 1.593 * 0.3/0.7
= 0.68
Ответ: