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Estimation of Beta of a Stock-Multiple Choice Question

Question

You are evaluating a new project and need an estimate for your project's beta. You have identified the following information about three firms with comparable projects: 

Firm Name

Equity Beta

Debt Beta

Debt to Equity Ratio

Franklin

1.25

0

0.25

TXR

1.6

0.2

1

Sempcor

2.3

0.3

1.5

The unlevered beta for Sempcor is closest to:

A) 1.00

B) 0.90

C) 0.95

D) 1.10

 

 

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Comments

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    Cristina

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  • HWA
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  • HWA
    Giuseppe

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