Company TenTen is currently financed by 20% debt and 80% equity and has an equity beta of 1.25. Assume debt beta=0. If the company changes its capital structure to 40% debt and 60% equity, what would be its equity beta after the capital structure change?

Group of answer choices

(A) 1.00

(B) 1.25

(C) 1.35

(D) 1.44

(E) 1.67

(F) 1.89

(G) 2.08