Marley Inc. is a small, publicly traded music producer, with 20 million shares trading at $15/share and no debt. The company announces that it will borrow money to move to a debt to capital ratio [debt / (debt + equity)] of 20% and lower its cost of capital to 7.5%. The new cost of capital reflects both costs and benefits of using debt. If the stock price jumps to $15.90 on the announcement and investors are rational, estimate the beta for the company after the borrowing. The risk free rate is 3%, the equity risk premium is 5% and the marginal tax rate is 25%. Assume that firm value changes are proportional to the changes in cost of capital and that beta of debt is zero.