Current	Wd	30%	Tax rate	30%
Structure	Ws	70%
	WACC	12%
Other	Rf	5%	Tax rate	30%
Factors	Market Risk Premium	8%

As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio (D/E) to 1.5. What is the levered beta of the target capital structure?

Group of answer choices

1.577

1.281

1.104

2.523