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Evergreen's, a drug retailer, has a current debt-to-equity (D/E) ratio of 21%, and its current equity beta is 0.7. The company plans to increase its
Evergreen's, a drug retailer, has a current debt-to-equity (D/E) ratio of 21%, and its current equity beta is 0.7. The company plans to increase its D/E ratio to 64%. Assuming that Evergreen's debt beta is zero under both leverage scenarios, find the company's equity beta after the increase in leverage. Write your answer with two decimals; e.g., 1.23
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