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Globo-Chem Co. has a capital structure that consists of 35% debt and 65% equity. The firm's current beta is 1.15, but management wants to understand

Globo-Chem Co. has a capital structure that consists of 35% debt and 65% equity. The firm\\\\\\\'s current beta is 1.15, but management wants to understand Globo-Chem Co.\\\\\\\'s market risk without the effect of leverage.

If Globo-Chem Co. has a 35% tax rate, what is its unlevered beta?

O 0.73

O 0.93

O 0.81

O 0.97

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