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Global corp. currently has a capitial structure consisting of 40% debt, and 60% equity. However, Global's corp's CFO has suggested that the firm increase its

Global corp. currently has a capitial structure consisting of 40% debt, and 60% equity. However, Global's corp's CFO has suggested that the firm increase its debt ratio to 50%. The current risk free rate is 3.5%, the market risk premium is 7% and global corp's beta is 1.25. If the firms tax rate is 40%, what will be the beta of an all equity firm if its operations were exactly the same?

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