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the firm currentlyhas12millionsharesoutstanding,tradingat$25pershare.Thefirmisconsideringissuing3millionmoresharesatthecurrentmarketprice,borrowing$125millionandusingtheentireproceedstobuyaSapientTechnologies,asoftwarefirm.Sapient currently has no debtoutstandingandhasbeenpubliclytradedforonly3months.While a regression beta is notavailable,theaveragebetaforsoftwarefirmsis1.40andtheaverage debt to equityratioforthesefirmsis20%.EstimatethebetaforVivantChemicalsafter the transaction. (You can assume a 40% tax rate for

the firm currentlyhas12millionsharesoutstanding,tradingat$25pershare.Thefirmisconsideringissuing3millionmoresharesatthecurrentmarketprice,borrowing$125millionandusingtheentireproceedstobuyaSapientTechnologies,asoftwarefirm.Sapient currently has no debtoutstandingandhasbeenpubliclytradedforonly3months.While a regression beta is notavailable,theaveragebetaforsoftwarefirmsis1.40andtheaverage debt to equityratioforthesefirmsis20%.EstimatethebetaforVivantChemicalsafter the transaction. (You can assume a 40% tax rate for all firms)

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