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What is the asset beta if the corporate tax rate

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Finance question. Have answer need you to show me formula and steps. The equity beta of a levered firm is 1.6. The beta of debt is0 .2. The firm's( market value) debt to equity ratio is 0.4. What is the asset beta if the corporate tax rate is 30% Answer 1.20 Ba = Be(E/V) + Bd(D/V) How do you get D/V = 0.286 and e/V = 0.714? and then get the Beta of asset = 1.20

Reference no: EM132444198

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