Counts Accounting has a beta of 1.15. The tax rate is 40%, and Counts is financed with 20% debt. What is Count’s unlevered beta?

Counts Accounting has a beta of 1.15. The tax rate is 40%, and Counts is financed with 20% debt. What is Count’s unlevered beta?

Counts Accounting has a beta of 1.15. The tax rate is 40%, and Counts is financed with 20% debt. What is Count’s unlevered beta?Solution:Unlevered beta = Levered beta/ [1 + (1 – t) x D/E] =…