Part A XYZ currently has a capital structure of 40% debt and 60% equity. XYZ's levered beta is 2.0 under its current capital structure. The firm's tax rate is 40%. What is the value of the XYZ's unlevered beta?

show your answer to 1 decimal place (example: a beta of 1.2)

Part B

XYZ is considering altering its capital structure. Currently it has 40% debt and 60% equity. XYZ's levered beta is 2.0 under its current capital structure. The firm's tax rate is 40% which will not change if the capital structure is altered. What is the value of the levered beta if XYZ changes its capital structure to 50% debt, 50% equity?

show your answer to 1 decimal place (example: a beta of 1.2)