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The Market Value of a Firm's Equity Is $26 Million

Question 57

Multiple Choice

The market value of a firm's equity is $26 million and the market value of its debt is $16 million. The equity beta is 0.85 and the beta of the firm's debt is 0.0. What is the firm's asset
Beta? Round your answer to the nearest hundredth.


A) 1.03
B) 0.80
C) 0.53
D) 0.73

Correct Answer:

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