The beta of indell stock be after transaction

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Reference no: EM132001047

Indell stock has a current market value of $ 100 million and a beta of 2.00. Indell currently has? risk-free debt as well. The firm decides to change its capital structure by issuing $ 15.97 million in additional? risk-free debt, and then using this $ 15.97 million plus another $ 8 million in cash to repurchase stock. With perfect capital? markets, what will the beta of Indell stock be after this? transaction?

Reference no: EM132001047

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