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What is brandi levered beta at debt level

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Reference no: EM132630926

Problem 1: Brandi Co. has a beta of 1.00. The firm currently has 30% debt, but is considering changing its capital structure to be 20% debt and 80% equity. If its corporate tax rate is 40%, what is Brandi's levered beta at 20% debt level?

Option 1: 1.75

Option 2: 0.91

Option 3: 1.01

Option 4: 1.19

Reference no: EM132630926

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