joemoran

Thanks DTM,
I was having trouble calculating Beta for each D/D+E or D/A as you called it.
Reason was that the book normally indicates D/E (debt to equity ratio) to calculate asset or equity beta. This example specifically indicated D/D+E (debt to total capital ratio).
So I guess you can convert debt to capital ratio to debt to equity by dividing debt to captital ratio by 1  Debt to capital ratio? How’d you figure that out?