18. (12 pts) You are the CFO of a levered corporation in a Perfect Capital Market. In January 2020 your firms financial information is as follows: -Outstanding Market Value debt is $25 million -Cost of debt is 4.00% which includes a 50 basis point credit spread -Market Value of Equity is $175 million -Expected Return of the Market is 6.50% -Beta of the firms stock is 1.5 -Total volatility of the firms return is 30% Now in April 2020 you are presented with an opportunity to invest in a new IT infrastructure that requires a $50 million upfront investment. You as CFO approve the IT project and decide to finance 30% by issuing new shares of stock and to finance the remaining 70% of the project by issuing new debt. The cost of debt is still 4.00%. The Expected Return of the Market is still at 6.50%, What is the Beta of your firms stock after issuing the new financing in April 2020 to embark on the IT project?

PLEASE SHOW ALL CALCULATIONS.