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You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources,...

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.7, a debt-to-equity ratio of .7, and a tax rate of 20 percent. Based on this information, what is Lauryn’s asset beta? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Lauryn's asset beta _______

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Answer #1

unlevered beta = asset beta = 1.09

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