The current information for firm ABC is as follows: . Market value of debt: 3000 million . Number of shares issued: 100 million Current stock price: $60 per share Current Beta: 1.5 Current WACC: 16% The expected annual growth rate of the firm is 4%. Marginal tax rate: 40% The firm is considering a major change in its capital structure. You are CFO of ABC and now you have three options: Option A: Issue $1000 million in new stock and repurchase 1/3 of its outstanding debt. The firm's credit rating will be AAA in this case, and the associated interest rate will be 10%. Option B: Issue $2000 million in new debt to buy back stock. The firm's credit rating will become A- with an associated interest rate of 12%. Option C: Issue $3000 million in new debt to buy back stock. The firm's credit rating will be CCC and the associated interest rate is 16%. Note 1: The current interest on T-Bill is 7.5% and the interest on T-Bonds is 8%. Note 2: Return on the market portfolio is 16.5% Q1. a) Estimate levered betas for the firm under options A, B, and C, respectively.(hint: first calculate the unlevered beta of the firm, then calculate the levered betas based on D/E under each option.)