Beta Flashcards
(2 cards)
1
Q
How do you adjust beta for leverage (get levered beta)?
A
βL=βU· ( 1+D/E(1−T) )
2
Q
How do you compute the unlevered beta from levered beta?
A
see sheet
How do you adjust beta for leverage (get levered beta)?
βL=βU· ( 1+D/E(1−T) )
How do you compute the unlevered beta from levered beta?
see sheet