Beta Leveraging Deleveraging Formula
Following are the formulas -
Unlevered Beta =/ (1 + ((1 – Tax Rate) x (Debt/EQUITY)))
Levered Beta = Unlevered Beta x (1 + ((1 – Tax Rate) x (Debt/EQUITY)))
My question -
In the Debt/EQUITY part the EQUITY is Book Value of Equity or the Market Value or Enterprise Value ?