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Gorilla Surgical Instruments (GSI) has a total debt of $300 million and 4 million shares trading at $50 a share. GSI's conservative CFO holds $80

Gorilla Surgical Instruments (GSI) has a total debt of $300 million and 4 million shares trading at $50 a share. GSI's conservative CFO holds $80 million in cash and $20 million in 3-month US Treasury bills. The CFO also estimates that Gorilla;s equity and debt beta amount to 0.6 and 0.4, respectively. Based on this information, please estimate Gorilla's unlevered beta?

a.

0.48

b.

0.47

c.

0.50

d.

0.52

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