General Fitness Inc. is a publicly traded company that operates gyms across the United States. The company currently has 100 million shares trading at $8/share and $200 million in debt outstanding; it also has a cash balance of $100 million. (The marginal tax rate is 40% for all companies) a. Assuming that the unlevered beta for the gym business is 0.80, estimate the levered beta for General Fitness Inc. (as a company). (2 points) b. Now assume that General Fitness plans to borrow $200 million to augment its cash balance of $100 million and to buy an exercise equipment manufacturer for $300 million. If the unlevered beta of the exercise equipment business is 1.20, estimate the levered beta after this acquisition.