1. Bailey and Sons has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would Bailey's beta be if it used no debt, i.e., what is its unlevered beta?
Please provide a detailed answer
2. Where does the dividend payment have to go in a Cash Flow? It goes under or above the net income?
3. How are sensitivity, scenario, and break-even analyses used to see the effect of an error in forecasts on project profitability?