Chen needs to determine a beta for a private company for valuation. He found a

public comparable with an equity beta of $2\mathrm{.}09.$ As of the valuation date, the public

comparable has $30\%$ of debt and $70\%$ equity. The private company is $50\%$ funded by

debt and $50\%$ funded by equity. Assume both companies' debt is high quality. What

is the estimated equity beta of the private company?

a$)2\mathrm{.}93$

b$)2\mathrm{.}09$

c$)2\mathrm{.}5$