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Business, 07.03.2020 03:47 kay20081

Indell stock has a current market value of $ 150 million and a beta of 0.90. Indell currently has risk-free debt as well. The firm decides to change its capital structure by issuing $ 23.01 million in additional risk-free debt, and then using this $ 23.01 million plus another $ 16 million in cash to repurchase stock. With perfect capital markets, what will the beta of Indell stock be after this transaction?

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