Levered organization with a debt-to-equity ratio

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Q. Lizpaz Inc. is a levered organization with a debt-to-equity ratio of 0.25. The beta of the common stock is 1.15, while the beta of the debt is 0.3. The market-risk premium is 10 percent and the risk-free rate is 6 percent. The corporate tax rate is 35 percent.

Reference no: EM13110558

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