Estimate the unlevered beta for the company

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Question: Boise Cascade also had debt outstanding of $ 1.7 billion and a market value of equity of $ 1.5 billion; the corporate marginal tax rate was 36%.

a. Assuming that the current beta of 0.95 for the stock is a reasonable one, estimate the unlevered beta for the company.

b. How much of the risk in the company can be attributed to business risk and how much to financial leverage risk?

Reference no: EM131682886

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