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A comparable firm ( i . e . , same industry and similar operations as our firm ) has an equity beta of 1 .

A comparable firm (i.e., same industry and similar operations as our firm) has an equity beta of 1.3 and a debt-to-value ratio of 0.2. The debt of the comparable firm is risk-free. Based on the comparable firm, what is an appropriate asset beta for our firm? Give your answer to the closest 0.01.

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