Assume a Modigliani & Miller world where there are no taxes , no bankruptcy costs . A company is 25% financed by debt and 75% by equity. This ratio does not change through time. The stock’s beta is...


Assume a
Modigliani & Millerworld where there are
no taxes,
no bankruptcy costs.  A company is 25% financed by debt and 75% by equity. This

ratio
 does not change through time. The stock’s beta is 1.4 and the debt’s beta is 0.2.  What is the stock’s unlevered beta?



Jun 03, 2022
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