1. The beta of Ericsson, the Swedish communications technology firm, is 0.70. What do you think is the main determinant of Ericsson’s beta and why? 2. ‘If I use the after-tax cost of debt for my...

1. The beta of Ericsson, the Swedish communications technology firm, is 0.70. What do you think is the main determinant of Ericsson’s beta and why?

2. ‘If I use the after-tax cost of debt for my project analysis then I should use the after-tax cost of equity as well.’ Do you agree with this statement? Explain.