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Two companies are identical in every respect except for their capital structure. XY has a debt:equity ratio of 1:3 and its equity has a ß value of 1.30. PQ has a debt:equity ratio of 2:3. Tax on profits is at 30%. Estimate a ß value for PQ's equity. A. 0.647 B. 1.546 C. 1.300 D. 1.054 |