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allocating shareholder capital to pension plan question
Hello, schweser book 2 page 59, it says
firm equity beta / firm asset beta =(1+D/E)
and the conclusion is debt-equity ratio increases, its equity beta increases... it sounds like firm asset beta desn't change...
I got confused because I think it makes a lot more sense to say debt/equity increases, then the firm asset beta decreases!
please help! thanks! |
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