Find unlevered beta, El Capitan Foods has a capital

Find unlevered beta

Reference no: EM1348695

El Capitan Foods has a capital structure of 40% debt and 60% equity, if its tax rate is 35%, and its beta (leveraged) is 1.25. Based on the Hamada equation, what would the firm's beta be if it used no debt, i.e. what is its unlevered beta?

Reference no: EM1348695

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Find unlevered beta : El Capitan Foods has a capital structure of 40 percent debt and 60 percent equity, if its tax rate is 35%, and its beta (leveraged) is 1.25. Based on the Hamada equation,

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