What is the firms unlevered beta

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Reference no: EM132006083

1. Last year, you earned a rate of return of 8.7 percent on your bond investments. During that time, the inflation rate was 2.68 percent. What was your real rate of return? Use the exact relationship between real and nominal rates. Enter answer in percents, accurate to two decimal places.

2. Nicholas Corporation has a beta of 1.20, the tax is 40%, and the firm is financed with 20% debt Currently the cost of debt, pretax is 4%. What is the firms unlevered beta?

Reference no: EM132006083

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