Management estimates that the beta of the debt is 0.3 and, Ask an Expert

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The XYZ Company has a financial structure that includes debt and equity. There is no preferred stock in the capital structure. The portion of the capital structure financed by debt is 55%. Management estimates that the beta of the debt is 0.3 and the beta of the total assets is 0.5. What is the beta of XYZ Company"s equity?

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Category:- Corporate Finance
Reference No.:- M9471865

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