VLC Inc. considering a merger with The S Corp Company. VLC currently has a required return of 21%, while S Corp has required return is 7.5%. The market risk premium is 9% and the return on Tbills is 3%. Assume the market is in equilibrium. If VLC is going to make up 70% of the new firm (and S Corp will comprise the remaining 30%), what will be the beta of the new merged firm? A) 1.35 B) 1.55 C) 2.0 D).75 E) 1.75 D D E