El Capitan Foods has a capital structure of 40% debt and 60% equity,its tax rate is 35%,and its beta (leveraged)is 1.25.Based on the Hamada equation,what would the firm's beta be if it used no debt,i.e.,what is its unlevered beta,b_U? A)0.71 B)0.75 C)0.79 D)0.83 E)0.87

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The Answer of El Capitan Foods has a capital structure of 40% debt and 60% equity,its tax rate is 35%,and its beta (leveraged)is 1.25.Based on the Hamada equation,what would the firm's beta be if it used no debt,i.e.,what is its unlevered beta,b_U? A)0.71 B)0.75 C)0.79 D)0.83 E)0.87

El Capitan Foods Has a Capital Structure of 40% Debt