Suppose a company uses only debt and internal equity to do its capital budgeting and uses CAPM to compute its cost of equity. Company estimates that its WACC is $12\%.$ The capital structure is $75\%$ debt and $25\%$ internal equity. Before tax cost of debt is $12\mathrm{.}5\%$ and tax rate is $20\%.$ Risk free rate is $=6\%$ and market risk premium $()=8\%$ : What is the beta of the company?

$a.1\mathrm{.}2$

$.1\mathrm{.}8$

$.1\mathrm{.}5$

Please show me step by step example