An all-equity firm has a beta of .85. Assume the beta of debt is equal to the risk-free beta. If the firm changes to a debt-equity ratio of 40 percent debt its equity beta would be ____ and if it changes its debt-equity ratio to 50 percent is equity beta would be _____.

1.417; 1.275

1.417; 1.700

.567; .850

1.190; 1.700

1.190; 1.275