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Can anyone help with the solution to this Finance problem?Q) A company has a levered beta of 1.20. It's captial structure consists of 40% debt and 60% equity and it has a corporate tax rate of 40%. What is the company's unlevered beta?
A) .53
BU = BL / (1+(1-TC) *(D/E))
BU= unlevered beta
BL= levered beta
TC= tax rate
D/E= debt to equity
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