Super Grocers, Inc., provided the following financial information for the quarter ending September 30, 2006: Depreciation and amortization - $133,414 Net income - $341,463 Increase in receivables - $112,709 Increase in inventory - $81,336 Increase
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El Capitan Foods has a capital structure of 37% debt and 63% equity, its tax rate is 35%, and its beta (leveraged) is 1.45. Based on the Hamada equation, what would the firm's beta be if it used no debt, i. e., what is its unlevered beta, bU?1.050.
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