quelicristinacr9775 quelicristinacr9775
  • 05-06-2024
  • Business
Answered

Yerba Industries is an​ all-equity firm whose stock has a beta of 0.60 and an expected return of 14.5%. Suppose it issues new​ risk-free debt with a 5% yield and repurchases 40% of its stock. Assume perfect capital markets.
a. What is the beta of Yerba stock after this​ transaction?



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