Assume a firm is financed with $7500 debt and $2500 equity.  The beta of the equity is 1.1.  The risk-free rate is 3%, and the equity premium is 6%.  If the overall cost of capital of the firm is 8%, what is the beta of the firmʹs debt? Group of answer choices 0.28 0.14 0.92                                                             0.74

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A: given, debt = $35 million  Equity = $55 million rd×1-t=5.53%re=13.915%

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