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Assume that Modigliani and Miller Propositions hold. You are given the following information about a firm: Equity beta 0.90 Market capitalization $42 million Total debt

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Assume that Modigliani and Miller Propositions hold. You are given the following information about a firm: Equity beta 0.90 Market capitalization $42 million Total debt $16 million Total cash $22 million Assume that the firm's debt and cash investments are risk-free. The firm plans to reduce its market capitalization by $10 million by issuing more debts. Determine the equity beta after the increase in leverage

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