What is the beta of levered equity

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Your company has a debt to equity ratio equal to 2.5 and a constant debt policy. The company's debt is risky with a beta equal to 0.1, and the market cost of debt is 3%. The corporate tax rate is 15%, the risk free rate is 1% and the return on levered equity is 12%. What is the beta of levered equity?

Reference no: EM13725267

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