Top Posters
Since Sunday
18
s
5
C
4
j
4
s
4
W
3
a
3
H
3
s
3
a
3
o
3
K
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Memphic Memphic
wrote...
Go to Answer
Posts: 728
Rep: 0 0
5 years ago
Luther Industries has a market capitalization of $23 billion, no debt, and $4 billion in cash.  If Luther's estimated equity beta is 1.32, then the beta of Luther's underlying business enterprise is closest to:
A) 1.09
B) 1.32
C) 1.48
D) 1.60
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 937 times
1 Reply
Replies
Answer verified by a subject expert
EgorGruzdevEgorGruzdev
wrote...
#1
Posts: 422
Rep: 16 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
D
Explanation:  D) βU =  βE +  βD =   × 1.32 +   × 0 = 1.597895

Related Topics

Memphic Author
wrote...

5 years ago
Good timing, thanks!
kriggs62
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
2ne1_12345
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  116 People Browsing
 293 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 701
  
 251
  
 153
Your Opinion
Previous poll results: What's your favorite math subject?