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Capita Mall Inc. has a capital structure of 20% debt and 80% equity. It is considering changing the capital structure to 40% debbt and 60%

Capita Mall Inc. has a capital structure of 20% debt and 80% equity. It is considering changing the capital structure to 40% debbt and 60% equity by issuing additional bonds and using the proceeds to repurchase and retire common shares. What is the beta after recapitalization? Assume the risk-free rate is 2%, market risk premium is 6%, and the current beta of Capital Mall Inc is 1.2. The corporate tax rate is 30%.

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