Estimate of the asset beta for abc corp

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Reference no: EM133112756

Consider the following information regarding corporate bonds: 

What is the estimate of the asset beta for ABC Corp:

A. 0.81

B. 1.23

C. 1.30

D. 1.40

Company

Market Value of Equity ($m)

Market Value of Debt ($m)

Equity Beta

Debt Beta

ABC Corp.

$5,000

$2,500

1.8

0.3

Reference no: EM133112756

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