Assume an all-equity firm starts to borrow with 30 debt


What is business risk? What is financial risk? Assume an all-equity firm starts to borrow with 30% debt ratio. If the unlevered beta=1.5, what will be the leveled beta using Hamada's equation if the tax rate = 40%?

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Finance Basics: Assume an all-equity firm starts to borrow with 30 debt
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