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Gepla Software is a steel company with 100 million shares trading at $25/share and $500 million in debt. You have run a regression of the

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Gepla Software is a steel company with 100 million shares trading at $25/share and $500 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. Select one: O a. 1.10 O b. 1.12 O c. 1.06 O d. 1.19 O e. 1.00

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