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XYZ Corp. has 50% debt and 50% equity in its capital structure. It currently has a beta of 1.5. If it decides to issue new

XYZ Corp. has 50% debt and 50% equity in its capital structure. It currently has a beta of 1.5. If it decides to issue new stocks and redeem $10 million of the total $20 million debt, what will be the firm's new beta assuming the tax rate is 30%?

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