Problem 7 Suppose the Modigliani-Miller assumptions hold, and we have no taxes. Cantrasus Inc. currently has no debt. The market value of its equity is $10,000,000. The beta of the equity is 1.5. Cantrasus decides to borrow $2,000,000 and use the proceeds to buy back shares. The debt can be considered risk-free. What is Cantrasus' equity beta following the change in its capital structure? a. 1.500 b. 1.800 c. 1.875 d. 2.000