Indell stock has a current market value of

$100

million and a beta of

1.80.

Indell currently has risk-free debt as well. The firm decides to change its capital structure by issuing

$27.52

million in additional risk-free debt, and then using this

$27.52

million plus another

$15

million in cash to repurchase stock. With perfect capital markets, what will the beta of Indell stock be after this transaction?