Hartman Motors has $18 million in assets, which were financed with$6 million of debt and $12 million in equity. Hartman’s beta is currently 1.3, and its tax rateis 35%. Use the Hamada equation to find Hartman’s unlevered beta, bU.
Hartman Motors has $18 million in assets, which were financed with$6 million of debt and $12 million in equity. Hartman’s beta is currently 1.3, and its tax rateis 35%. Use the Hamada equation to find Hartman’s unlevered beta, bU.
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 7P
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Hartman Motors has $18 million in assets, which were financed with
$6 million of debt and $12 million in equity. Hartman’s beta is currently 1.3, and its tax rate
is 35%. Use the Hamada equation to find Hartman’s unlevered beta, bU.
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