Company X has 150 million shares trading at $20/ share and $400 million in debt. You have run a regression of the firm's stock returns against a market index using the last 5 years of data and have estimated a beta of 1.06. If the regression beta is right, the average debt to equity ratio for the company over the last 5 years was 10% and the marginal tax rate is 40%, estimate the beta for the equity, given its current financial leverage. 1.05 1.14 None of the others 1.08 1.11