Suppose that Tesla has a market Beta of 2.01 . They have a debt to equity valve of34%and a tax rate of25%. The risk free rate is3%and the inarket risk premium is4.1%Suppose that Tesla acquives Fivian and their new debt to equity rato is75%. What is Tesla's new market Beta? A. 1.75 B. 1.84 C. 201 D. 250
Suppose that Tesla has a market Beta of 2.01 . They have a debt to equity valve of34%and a tax rate of25%. The risk free rate is3%and the inarket risk premium is4.1%Suppose that Tesla acquives Fivian and their new debt to equity rato is75%. What is Tesla's new market Beta? A. 1.75 B. 1.84 C. 201 D. 250
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose that Tesla has a market Beta of 2.01 . They have a debt to equity valve of34%and a tax rate of25%. The risk free rate is3%and the inarket risk premium is4.1%Suppose that Tesla acquives Fivian and their new debt to equity rato is75%. What is Tesla's new market Beta? A. 1.75 B. 1.84 C. 201 D. 250
![QUESTION 8
Suppose that Tesla has a market Beta of 2.01. They have a debt to equity value of 34% and a tax rate of 25%. The risk free rate is 3% and the market risk premium is
Suppose that Tesla acquires Rivian and their new debt to equity ratio is 75%
What is Tesla's new market Beta?
OA 1.75
OB 1.84
OC. 201
OD 250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf0efead-925a-4015-9ff2-9ac511059483%2F3ac6944c-a188-4869-9cdd-324b25f6c9de%2F1ch6n9e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 8
Suppose that Tesla has a market Beta of 2.01. They have a debt to equity value of 34% and a tax rate of 25%. The risk free rate is 3% and the market risk premium is
Suppose that Tesla acquires Rivian and their new debt to equity ratio is 75%
What is Tesla's new market Beta?
OA 1.75
OB 1.84
OC. 201
OD 250
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