Calculating levered beta 7. If Hilgart Inc. had no debt in its capital structure, its unlevered beta would be 0.

Calculating levered beta

7. If Hilgart Inc. had no debt in its capital structure, its unlevered beta would be 0.75. However, the firm’s capital structure consists of 55% debt and 45% equity and it has a corporate tax rate of 40%. What is Duffert’s levered beta?

a. 0.885

b. 0.950

c. 1.100

d. 1.300

e. 1.450

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