Debt

β levered=β unlevered [1+ (1−Tax)]

Equity
Tax is 35%
Suppose Helix Company have beta (levered) of
1.71
Debt is 523
Equity is 1653

1.71/1+(0.31*0.65)

Beta Unlevered 1.41

Debt and equity effect of
listed firms have been
removed
Superior company
Debt is 1627
Equity is 4079
Total risk market risk plus debt and equity risk
Tax rate is 35%
Find Beta Levered

Debt
β levered=β unlevered [1+ (1−Tax)]
Equity
1.77 Beta of Superior Company which is unlisted

ABC Textile company is listed on PSX

have beta of 1.6
Having debt of 7840
Equity is 16267
Tax is 35%
Beta Unlevered is 1.22
When we are levering the beta we use Debt and equity
of listed firm

Ali want to invest in Non registered

firm name EDF textile having

Debt of 10565
Equity is 37850
You have to find out Beta levered of EDF firm