Solution-Common assumption for the debt beta

Common assumption for the debt beta

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Reference no: EM131214007

The cost of equity for RJ corporation is 8.4 percent and the debt equity ratio is .6. The expected return on the market is 10.4 percent and the risk-free rate 3.8 percent. using the common assumption for the debt beta, what is the asset beta?

a. .44

b. .62

c. .67

d. .59

e. .70

Reference no: EM131214007

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Common assumption for the debt beta : The cost of equity for RJ corporation is 8.4 percent and the debt equity ratio is .6. The expected return on the market is 10.4 percent and the risk-free rate 3.8 percent. using the common assumption for the debt beta, what is the asset beta?

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Common assumption for the debt beta

Reference no: EM131214007

Reference no: EM131214007

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