The effect of error in forecasts on project profitability

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1. Bailey and Sons has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would Bailey's beta be if it used no debt, i.e., what is its unlevered beta?

Please provide a detailed answer

2. Where does the dividend payment have to go in a Cash Flow? It goes under or above the net income?

3. How are sensitivity, scenario, and break-even analyses used to see the effect of an error in forecasts on project profitability?

Reference no: EM131907589

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