Beta is a proxy measure of firm$-$specific risk for a firm or project $($refer $12-4)$

If Beta for JMC $($when it was $100\%$ Equity financed with D$/$E $=0)$ was $1\mathrm{.}25($u$$

And given the Hamada Equation $($Refer Eqn $13\mathrm{.}2)$ for levered Beta $($L for a firm with Debt$)$

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Find the new Beta for JMC $($L in Scenario B with $50\%$ Equity and $50\%$ Debt D$/$E $=1\mathrm{.}0)$

Where t $=$ tax rate $(25\%)$ as in Scenario A

Analyze impact on financial risk by comparing levered Beta $($L$)$ of Scenario B with the unlevered Beta $($u$)$ of Scenario A$.$

Discuss the impact of levered beta on Cost of Equity and WACC