What is the beta of the firms assets

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Suppose a company has a debt to equity ratio of 0.6. Its debt is risk free. Its equity has a beta of 1.3. What is the beta of the firm's assets (i.e., its unlevered beta)? According to the Modigliani-Miller Theorem, what happens to your answer as the debt to equity ratio rises?

Reference no: EM131499737

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