The Free-Float Company, a company in the 36% tax bracket, has a total capital structure breakdown of 40% riskless debt and 60% equity. The beta of the equity is 1.4, and the asset beta is:
A) 0.98.
B) 1.22.
C) 1.40.
D) 1.11.
E) 1.26.
Correct Answer:
Verified
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