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 of 20% and lower its cost of capital to 7.5%. If the stock price jumps to $15.90 on the announcement, investors are rational and there is no growth in the financing cost savings over time, 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%.