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In mid - 2 0 1 5 , Wondafone had $ 1 0 billion in debt, total equity capitalization of $ 9 9 billion, and

In mid-2015, Wondafone had $10 billion in debt, total equity capitalization of $99 billion, and an equity beta of 1.5. Wondafone has $20 billion in cash and risk-free securities in its assets. Assume that the risk-free rate of interest is 3% and the market risk premium is 4%. What is the beta of Wondafones business assets assuming perfect capital markets and a high credit rating for the firm?
A.
1.36
B.
1.67
C.
1.5
D.
0.5

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