1. Boris Corporation is financed with 49 percent debt and the rest equity. It has a leveraged beta of 1.0 and is subject to a 45% corporate tax rate. What is Boris's unleveraged beta? Round the answer to two decimals.
2. The current value of a firm is $48,056 and it is 100% equity financed. The firm is considering restructuring so that it is 11% debt financed. If the firm's corporate tax rate is 30%, what will be the new value of the firm under the MM theory without taxes, transactions costs, or the possibility of bankruptcy? Round the answer to two decimals.