14-A large, publicly traded retailer is considering the purchase of a local retailer in the Houston market. The publicly traded retailer has a beta of 1.4, a debt ratio of 25% and a tax rate of 40%. The Houston based local company is privately owned, and has a debt ratio of 40% and a tax rate of 35%.

What is the beta of this private company?

a) 1.37

b) 1.47

c) 1.57

d) 1.67

e) 1.77

NEED to see the work and formulas PLZ.. Will Rate! :)