The company uses the CAPM to estimates its cost of common equity the risk-free rate is 5 percent

What is the Beta Coefficient when the debt-to-equity ratio is 0.25? [NOTE: 3 points Round off your answer to TWO decimal places. No need to put "times") * Freelance Corp. is trying to determine its optimal capital structure. The company's capital structure consists of debt and common stock. In order to estimate the cost of debt, the company has produced the following table: Debt-to-equity ratio (wa/we) Bond rating Debt-to-total Equity-to-total assets ratio assets ratio (wa) (we) 10% 90% 20% 80% 30% 70% 40% 50% 50% 0.11 0.25 0.43 0.67 1.00 AA A A BB B After-tax cost of debt 4.20% 4.32% 4.80% 5.28% 5.76% 60% The company's tax rate, T, is 40 percent. The company uses the CAPM to estimate its cost of common equity, ks. The risk-free rate is 5 percent and the market risk premium is 6 percent. Freelance Corp. estimates that if it had no debt, its beta would be 1.0 Gts "unlevered beta")