InterLine Ltd is an electricity distribution company. This means it owns and operates a network of powerlines and other associated infrastructure and fixed assets used to deliver power to homes and businesses. You are assisting the company in undertaking a capital structure review. You have the following information:

• In the year just passed (year 0), Interline's interest expense was $30 million and this is assumed to remain constant forever.
• Interline has a debt-to-equity (D/E) ratio of 0.8.
• Interline's asset beta is 0.45 and its debt beta is 0.
• The corporate tax rate (and Interline's marginal tax rate) is 28%.
• Assume all cash flows occur at the year end.

Use this information to help answer the questions that follow.

(a) Interline's equity beta is?

(b) If the risk-free rate is 4%, and Interline's debt is assumed to be riskless, then the total present value of Interline's tax shield is $ 0 million.