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ABC Company currently has a capital structure consisting of 4 7 % debt and the remaining as equity, a levered beta of 1 . 5

ABC Company currently has a capital structure consisting of 47% debt and the remaining as equity, a levered beta of 1.53, and its tax rate is 40%. The company is considering to adopt a new capital structure of 33% debt and the remaining as equity. What would the companys new levered beta be under the new capital structure? Round your answer to two decimal places. (Hint: Use the Hamada equation.)
Group of answer choices
1.29
1.20
1.26
1.18
1.23

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