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Firm $x$ has a target Debt$-$equity ratio of $1\mathrm{.}75$ and equity risk measured in beta of $1\mathrm{.}6.$ What is the firm's level of business risk?

Multiple Choice

$0\mathrm{.}58-$correct answer

$2\mathrm{.}13$

$2\mathrm{.}25$

$1\mathrm{.}58$