Question 13 (3.33 points) Lubbock currently has a capital structure of 45 percent debt and 55 percent equity, but is considering a new product that will be produced and marketed by a separate division. The new division will have a capital structure of 70 percent debt and 30 percent equity. Lubbock has a current beta of 1.8, but is not sure what the beta for the new division will be. Morrin is a firm that produces a product similar to the product under consideration by Lubbock. Morrin has a beta of 2.2, a capital structure of 60 percent debt and 40 percent equity and a marginal tax rate of 30 percent. Lubbock tax rate is 30 percent. Estimate the levered beta for Lubbock' new product division. 3.51 2.83 2.45 3.68