While the comparable companies have varying marginal tax


XYX Inc is evaluating a project. XYX intends to use 20% debt in funding the project. XYX identifies 5 comparable companies with the following equity beta's and debt/equity ratios. While the comparable companies have varying marginal tax rates XYZ's marginal tax rate is 25%.

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XYZ's levered beta for the project (or project beta) is closest to: 

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Managerial Accounting: While the comparable companies have varying marginal tax
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