New beta if they changed to using capital structure

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Timco needs to invest 400 in new assets. They use a capital structure that is 30% debt and 70% equity. Next years net income is expected to be 600. Find the amount for ABC Company has a beta of 1.2. EBIT is 100. They currently have no debt. Find the new beta if they changed to using a capital structure that used 30% debt and 70% equity. The tax rate is 35%.?

the residual dividend.?

Reference no: EM131491277

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