Java Company currently has a capital structure consisting of 55% debt and the remaining as...
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Accounting
Java Company currently has a capital structure consisting of 55% debt and the remaining as equity, a levered beta of 1.51, and its tax rate is 40%. The company is considering to adopt a new capital structure of 21% debt and the remaining as equity. What would the companys new levered beta be under the new capital structure? Round your answer to two decimal places. (Hint: Use the Hamada equation.)
Group of answer choices
1.05
1.03
1.01
1.07
1.10
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