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QUESTION

Suppose the capital structure and unlevered beta estimates for several comparable firms in the market are the following: Firm E/(E+D) D/(E+D) E D U...

Suppose the capital structure and unlevered beta estimates for several comparable firms in the market are the following:

 Firm         E/(E+D)    D/(E+D)                   βE     βD    βU

Okay    1.00          0.00                           1.50    0      1.50

Apple    0.91         0.09                            0.70    0     ?

Pear    1.05          -0.05                            0.60   0     0.63

What is the unlevered beta for Apple?

 A. 0.00 B. 0.64 C. 1.15 D. 1.0

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