NO.PZ202312130100000203
问题如下：
Which statement is most correct regarding Schwalke’s estimation of JNK’s beta?
选项：
A.Schwalke estimates JNK’s beta to be less than 1.20.
Schwalke estimates JNK’s beta to be 1.20
Schwalke estimates JNK’s beta to be greater than 1.20
解释：
A is Correct. Observed beta estimates from public companies are levered betas. The levered beta must be adjusted to remove the effects of the debt on firm risk by applying the following unlevered beta equation.
The larger the public company debt ratio,
the lower the unlevered beta result. The unlevered beta is re-levered using
JNK’s debt ratio using the following levered beta equation. As JNK’s debt ratio is below that of the
public companies, the resulting levered
beta will not be as high as the levered beta
for the public companies.
rt
