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Hi, I have a set of three similar questions here. I don'tnecessarily need them all answered. Maybe just one or two, what Ireally need is the formulas used in solving these types ofquestions and an explanation of that, which doesn't need to bedetailed, just an explanation of the notation and variables used.Please!! Thanks!25. A levered firm has a debt-to-equity ratio of 0.38 and anequity beta of 1.42. What would be the beta of the firm if itswitched to an all-equity financial structure?A) 1.420 B) 0.704 C) 0.972 D) 0.939 E) 1.02926. Metal Roofs has an equity beta of 1.47, a capital structurewith three parts of debt for every five parts of equity, and a zerotax rate. What is its asset beta?A) 1.048 B) 0.940 C) 1.102 D) 1.006 E) 0.91927. An all-equity firm has a beta of 0.94. Assume the beta ofdebt is equal to the risk-free beta. If the firm changes to adebt-equity ratio of 0.35, its equity beta would be ________, andif it changes its debt-equity ratio to 0.40, its equity beta wouldbe ________.A) 1.269; 1.316 B) 1.269; 1.234 C) 1.190; 1.234 D) 1.190; 1.316E) 1.234; 1.316
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