chandsingh

TheDooner64, I think you are right, I hadn't noticed how simple it really is.

Tho you did forget the tax shield, tho:
Delevered beta with taxes: divide by (1 + (1-t) x D/E)
Relevered beta with taxes: multiply by (1 + (1-t) x D/E)

Intuitively, is it fair to say that as you add debt to a capital structure you expect the riskieness of the the overall company to decrease, since debt is viewed as less risky?