IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment, and must estimate its cost of capital. You find the following data for apublicly-traded firm in the same line of business.

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By making some realistic assumptions, estimate the project's beta.

Debt outstanding (book value, AA-rated) $380 million

Number of shares of common stock 75 million

Stock price per share $17.73

Book value of equity per share $6.75

Beta of equity 1.08