Jinna D.

asked • 03/13/21

How do I calculate equity beta?

Trying to determine the equity beta (β) of a privately held company, Summa Corporation, that is not required to publish its financial information. The average asset beta from a group of comparable companies is

1.28. If Summa Corp has a debt/equity ratio of 30% and the tax rate is 35% what is its equity beta (β)?

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