ABC Company currently has a capital structure consisting of 51% debt and the remaining as equity, a levered beta of 1.74, and its tax rate is 40%. The company is considering to adopt a new capital structure of 27% 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

1.25

1.31

1.28

1.37

1.34