Companies A and B are identical except for their capital structures.Company A is an all-equity company while Company B is levered.Given this,you can assume that Company B's equity beta is ________ Company A's beta and its debt beta is assumed to be ________.
A) greater than; equal to zero
B) greater than; equal to one
C) equal to; equal to the market beta
D) less than: equal to zero
E) less than; equal to one
Correct Answer:
Verified
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