What is its unlevered beta and levered beta

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Reference no: EM13911617

Slow Watch Company has a levered beta of 1.10, its capital structure consists of 44% debt and 56% equity, and its tax rate is 40%. What would Slow Watch's beta be if it used no debt, i.e., what is its unlevered beta?

0.64

0.67

0.71

0.75

0.79

Reference no: EM13911617

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