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SteelCo. has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would

SteelCo. has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would Angs beta be if it used no debt, i.e., what is its unlevered beta?

	a.	0.75
	b.	0.67
	c.	0.79
	d.	0.71

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