Nielsen Motors (KM) is a newly public firm with 25 million shares outstanding. You arc doing a valuation analysis of Nielson and you estimate its free cash flow in the coming year to be WO million. You expect the firm's free cash flows to grow by 4% per year in subsequent years. Because the firm has only been listed on the stock exchange for a short time, you do not have an accurate assessment of Nielson's equity beta. However, you do have the following data for another firm in the same industry: Nielson has a much lower debt equity ratio of .5. which is expected to remain stable, and Nielson's debt is risk free. Nielson's corporate tax rate is 40%, the risk - free rate is 5%, and the expected return on the market portfolio is 10%. Nielson's estimated equity beta is closest to: 0.95 1.25 1.45 1.00