What is its unlevered beta

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Reference no: EM13947125

Ang Enterprises has a levered beta of 1.16, a capital structure with a 40 percent debt ratio, and a marginal tax rate of 35 percent. What would Ang's beta be if it used no debt in its capital structure, i.e., what is its unlevered beta?

a. 0.86

b. 0.81

c. 0.64

d. 0.75

e. 0.92

Reference no: EM13947125

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