OF Corporation (OFC), a phone company, is considering expanding its operations into the media business. The beta for the company at the end of 2015 was 0.90 and the debt/equity ratio was 1. The media business is expected to be 30% of the overall firm value in 2025 and the average beta of the comparable firms is 1.20; the average debt/equity ratio for these firms is 50%. The marginal corporate tax rate is 36%. Estimate the beta for OF Corporation in 2025, assuming that it maintains its current debt/equity ratio.

OF Corporation (OFC), a phone company, is considering expanding its operations into the media business. The beta for the company at the end of 2015 was 0.90 and the debt/equity ratio was 1. The media business is expected to be 30% of the overall firm value in 2025 and the average beta of the comparable firms is 1.20 ; the average debt/equity ratio for these firms is 50%. The marginal corporate tax rate is 36%. Estimate the beta for OF Corporation in 2025 , assuming that it maintains its current debt/equity ratio. 10:40