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Other Fields Homework Help Finance Topic started by: EpiscoWhat on Nov 20, 2017



Title: Consider the following equation:βU = βE + βDThe term βD in the equation is:
Post by: EpiscoWhat on Nov 20, 2017
Consider the following equation:

βU =   βE +   βD

The term βD in the equation is:
A) the same as the beta of the firm's assets.
B) the required return on the firm's equity.
C) the proportion of the firm financed with equity.
D) equal to zero if the firm's debt is riskless.


Title: Re: Consider the following equation:βU = βE + βDThe term βD in the equation is:
Post by: pbrown223 on Nov 20, 2017
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Title: Re: Consider the following equation:βU = βE + βDThe term βD in the equation is:
Post by: jmacon16 on Feb 21, 2020
Thanks