Firm has an equity beta

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A firm is valued at $8 million and has debt of $2 million outstanding. The firm has an equity beta of 1.5 and a debt beta of .60. The beta of the overall firm is:

a. 0.600.

b. 1.155.

c. 1.275.

d. 1.500.

e. None of these.

Reference no: EM13763193

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