Brandi Co. has a levered beta of 1.00. The firm currently has 30% debt, but is considering changing its

capital structure to be 0% debt and 100% equity. If its corporate tax rate is 40%, what is Brandi's unlevered beta?

a.
0.80

b.
0.88

c.
0.95

d.
1.03

e.
2.0

Brandi Co. has a beta of 1.20. The firm currently has 30% debt, but is considering changing its

capital structure to be 20% debt and 80% equity. If its corporate tax rate is 40%, what is Brandi's levered beta at 20% debt level?

a.
1.75

b.
1.10


c.
1.19

d.
1.01

e.
0.91

Albright Motors is expected to pay a year-end dividend of $3.00 a share (D1 = $3.00). The stock currently sells for $30 a share. The required (and expected) rate of return on the stock is 15 percent. If the dividend is expected to grow at a constant rate, g, what is g?

a.
7.00%

b.
6.00%

c.
9.00%

d.
8.00%

e.
5.00%

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Status NEW Posted 15 Dec 2017 03:12 PM My Price 10.00

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