A companys asset beta is the sensitivity of the value of the firms assets to changes in the value of the market portfolio. We can think of the asset beta as the beta the firms stock would have if the firm were completely equity financed (just as the cost of capital of the firms assets is the required return the companys shares would have if the company were entirely equity financed). Suppose that a firm has a 20% debt to value ratio. The firms cost of debt is 8%, and the cost of equity for the firm is 16%. If the risk-free interest rate is 4% and the market risk premium is 7%, what is the firms asset beta? A. 1.49 B. 1.71 C. 3.47 D. 4.57 E. 10.67