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Suppose an all-equity firm has a beta estimated to be 1.2 . If the firm changes its capital structure such that its debt-to-equity ratio is

Suppose an all-equity firm has a beta estimated to be 1.2 . If the firm changes its capital structure such that its debt-to-equity ratio is now 0.4 , what should be the revised beta estimate if it also faces a tax rate of 35 percent? The revised beta estimate is . (Round to two decimal places.)

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