Tipialo Solutions Inc has $3$ business segments with their respective asset value and asset beta as follows. The company$$s marginal tax rate is $20\%.$

Segment

Asset value

Asset beta

Technology

$2200$

$1\mathrm{.}6$

Insurance

$600$

$0\mathrm{.}8$

Staples

$200$

$1$

The company has $3000$ in total assets and a debt$-$to$-$equity ratio of $1/2.$

The company wants to divest both of its insurance and staples divisions and uses the proceeds to repay debt $($i$.$e$.$ reduce the current debt balance$).$

How much is the equity beta of the company after the divestiture?Tipialo Solutions Inc has $3$ business segments with their respective asset value and asset beta as follows. The company's marginal tax rate is

$20\%.$

The company has $3000$ in total assets and a debt$-$to$-$equity ratio of $\frac{1}{2}.$

The company wants to divest both of its insurance and staples divisions and uses the proceeds to repay debt $($i$.$e$.$ reduce the current debt

balance$).$

How much is the equity beta of the company after the divestiture?

A$.1\mathrm{.}6091$

B$.1\mathrm{.}6200$

C$.1\mathrm{.}7164$

D$.,1\mathrm{.}7280$

E$.$ None of the answers given in A$.,$ B$.,$ C$.$ and D$.$ are correct.