ABC software is trying to establish its optimal capital structure. It currently has 30% debt and 70% equity. However, the firm CEO believes that the firm should use more debt. The risk-free rate is 3% and the market risk premium is 5% The firm's tax rate is 35% and the cost of equity is 10%, as determined by the CAPM. Assume that the firm changed its capital structure to 40% debt and 60% equity. How much should be the firm's levered stock beta with the old capital structure ? Enter your answer in the following format 1,234 Hint #11: Answer is between 1.19 and 1.64