suppose that Maroon company, Ltd has a capital structure of 25 percent equity, 75 percent debt, and that its beafore-tax cost of debt is 8 percent while Maroon has WACC of 8.25 percent. Assume teh appropriate tax rate is 35 percent. If the market return is expected to be 15% and the risk-free rate is 5%, What's Maroon's beta?

0.4

0.9

1.24

1.74