ABC Company currently has a capital structure consisting of 53% debt and the remaining as equity, a levered beta of 1.7, and its tax rate is 40%. The company is considering to adopt a new capital structure of 32% 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.)

A) 1.35

B) 1.30

C) 1.37

D) 1.40

E) 1.32