ABC Company has a levered beta of 1.26, its capital structure consists of 42% debt and the remaining as equity, and its tax rate is 40%. What would the company's beta be if it used no debt? Round your answer to two decimal places of a whole number. (Hint: Use the Hamada equation.)

A) 0.91

B) 0.77

C) 0.85

D) 0.81

E) 0.88