Brandi Co. has a beta of 1.10. The firm currently has 30% debt, but is considering changing its capital structure to be 20% debt and 80% equity. If its corporate tax rate is 40%, what is Brandi's levered beta at 20% debt level?

Hint: First calculate unlevered beta using old capital structure and then calculate levered beta using the new capital structure.

a. 1.10

b. 1.19

c. 0.91

d. 1.01

e. 1.75