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What will the beta of the equity in the firm

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Question - Safecorp, which owns and operated grocery stores across the United States, currently has $50 million in debt $100 million in equity outstanding. Its stock has a beta of 1.2. It is planning a leverage buyout, where it will increase its debt-to-equity ratio of 8. If the tax rate is 40%, what will the beta of the equity in the firm be after the leverage buyout?

Reference no: EM132207339

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