Question

A company has $50,000 of debt outstanding has 10,000 shares outstanding and a stock price of $20. If the unlevered beta is 0.80,debt is risk-free (beta of zero) and the

marginal tax rate is 20%,what is the company's levered beta? А. 0.75 В. 0.80 С. 0.85 D. 0.90 Е. 0.96

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