Tannin corporation has $60 million of outstanding equity and $20 million of bank debt. The bank debt costs 6% per year. The estimated equity beta is 1.2. If the market risk premium is 5% and the risk-free rate is 3%,

unleveraged cost of equity is 8.25%

Then the company borrows $10 million dollar more and use the proceeds to buyback/retire its equity.

levered cost of equity in percentage with new debt level is 9.6%

1. what is the new levered beta at the new level of debt?

2. what is Tannin's unlevered beta for the current debt level in percentage.