a firm has an equity beta of 1.2, the risk-free rate of return is 3.4 percent, the market return is 15.7 percent, and the pretax cost of debt is 9.4 percent. The debt-equity ratio is .47. If you apply the common beta assumptions, what is the firms asset beta?

a. 0.816

b. 0.609

c. 0.667

d. 0.582