CFAI Book 4 page 121 error 121, should, error, write

jmh530

In the calculation for Beta on that page (not Example 6), they say Debt = 40%, Equity = 60% and then write the unlevered Beta calculation as:
= [1/(1 + (40/60)]*1.2
when it should be (60/40)?

tikfed

No newsuper
they are fine..
formula
Beta Unlevered = Beta * [1/(1+D/E)]
Then to lever it up for another company:
Beta New Levered = Beta Unlevered * (1+D/E for New Company).