ABC software is trying to establish its optimal capital structure. It currently has 25% debt and 75% 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 25% and the cost of equity is 12%, 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 unlevered stock beta? Enter your answer in the following format: 1,234;

Hint #1: Answer is between 1.22 and 1.63