Vivant Chemicals is a firm that has been unlevered and operated only in the chemicalbusiness for the last 5 years. A regression yields a beta estimate of 0.90 for that period andPast Quizzes Name:7the firm currently has 12 million shares outstanding, trading at $ 25 per share. The firm isconsidering issuing 3 million more shares at the current market price, borrowing $ 125million and using the entire proceeds to buy a Sapient Technologies, a software firm.Sapient currently has no debt outstanding and has been publicly traded for only 3 months.While a regression beta is not available, the average beta for software firms is 1.40 and theaverage debt to equity ratio for these firms is 20%. Estimate the beta for Vivant Chemicalsafter the transaction. (You can assume a 40% tax rate for all firms) (