OrganicBakery Inc. is a publicly traded company that uses only natural ingredients to bake sourdough bread on a large scale. It has 10 million shares outstanding, trading at $5/share, no debt or cash and has a beta of 0.75. It is considering borrowing $25 million and investing in bakery shops. If the beta of bakery shops/restaurants is 1.20, estimate the beta for OrganicBakery's equity after the expansion. (Assume that the marginal tax rate is 40%).

Select one:

A.1.08

B.0.90

C.1.17

D.1.56

E.None of the answers provided.