Brandi co has a beta of 120 the firm currently has 30 debt, Ask an Expert

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Brandi Co. has a beta of 1.20. The firm currently has 30% debt, but is considering changing its capital structure to be 20% debt and 80% equity. If its corporate tax rate is 40%, what is Brandi's levered beta at 20% debt level?

Hint: First calculate unlevered beta using old capital structure and then calculate levered beta using the new capital structure.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92720494

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