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PLEASE USE EXCEL TO SOLVE THE FOLLOWING QUESTION AND SHOW ALL WORK. THANK YOU! Orion is financed with 29% debt and the rest equity. Orion

image text in transcribed PLEASE USE EXCEL TO SOLVE THE FOLLOWING QUESTION AND SHOW ALL WORK. THANK YOU!

Orion is financed with 29% debt and the rest equity. Orion has an equity beta of 1.39 , a debt beta of 0 and a marginal tax rate of 29%. If Orion issues debt to repurchase equity so that the new firm is now 61% debt, what will be its new equity beta? (Continue to assume the debt beta remains at 0.) The new equity beta will be (Round to two decimal places.)

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