Compny is considering starting a new division in the food industry. There are three pure plays in this industry. The tax rate of all firms is 20%. The Beta, asset value, and D/E ratios of the three pure plays are given in the following table. The cost of debt is 5%. The target D/E ratio of this new division is .6. What is the Beta of this new division? (when calculating average Ru, use asset-weighted average.)

	Beta	D/E	Asset Value
A	1.8	0.5	$400 M
B	1.4	0.4	$300 M
C	1.2	0.25	$300 M