(Use the following information for the next three questions). Consider a world with taxes but no other market imperfections. BLT machinery has a debt to equity ratio of 2/3. Its cost of equity is 20%, cost of debt is 4%, and tax rate is 35%. Assume that the risk-free rate is 4%, and market risk premium is 8%. Suppose the firm repurchases stock and finances the repurchase with debt, causing its debt to equity ratio to change to 3/2. Question 14 What is the new equity beta? O New equity beta is 1.54 New equity beta is 3.04 New equity beta is 2.45 O New equity beta is 2.76 O None of the choices