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Indell stock has a current market value of $170 million and a beta of 1.90. Indell currently has risk-free debt as well. The firm decides
Indell stock has a current market value of $170 million and a beta of 1.90. Indell currently has risk-free debt as well. The firm decides to change its capital structure by issuing $54.04 million in additional risk-free debt, and then using this $54.04 million plus another $8 million in cash to repurchase stock. With perfect capital markets, what will the beta of Indell stock be after this transaction? The beta of Indell stock after the recapitalization is___________ . (Round to two decimal places.)
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