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Additional information about the target company: DTL plans to keep a target capital structure of 20% debt nancing, DN = 20%. The average interest...
Jane is working on a valuation deal to acquire a private company, DLT Inc.. She carefully selected three comparable companies and pulled the data for comparables, as shown in the table below. Please consider about these questions.
1) how to get unlever beta for all three comparables.
2) Use the MEDIAN unlevered beta as a proxy for the target company, DLT.
3) How to get Calculate DLT's unlevered cost of capital.
4) how to get relever beta and apply the CAPM model to estimate DLT's cost of equity.
4) define investment grade bond.