Tiger Woods needs to estimate a beta for his firm's retail division to ultimately calculate a WACC for this division. The division has a: weight of debt = 21%; weight of equity = 79%; and tax rate = 24%.

Tiger has identified 3 peer firms and found their betas, tax rates, and weights of equity and debt:

• Peer A: o Weight of debt = 29%
• o Weight of equity = 71%
• o Tax rate = 38%
• o Beta = 0.85
• Peer B: o Weight of debt = 28%
• o Weight of equity = 72%
• o Tax rate = 25%
• o Beta = 1
• Peer C o Weight of debt = 66%
• o Weight of equity = 34%
• o Tax rate = 41%
• o Beta = 1.70

Tiger knows that to estimate a divisional beta he will have to:

1. Unlever the betas of the 3 peer firms using equation: bu = b/ [1+(1-T)(wd/ws)]

2. Take an average of the 3 unlevered betas.

3. Re-lever the average beta based on the division's weights of equity and debt as well as the tax rate. He can calculate by using equation: b = bu [1+(1-T)(wd/ws)]

Based on the information above, what is the beta that Tiger should use for the beta for his division?