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XYZ Corporation, a publicly traded company, operates in a sector with an average unlevered beta of 1 . 2 . The company currently has a

XYZ Corporation, a publicly traded company, operates in a sector with an average unlevered beta of 1.2. The company currently has a levered beta of 1.6, a debt-to-equity ratio of 0.5, and a corporate tax rate of 30%. XYZ Co structure by increasing its debt level, which will alter its debt-to-equity ratio to 0.8. Assuming the business risk remains constant, estimate XYZ Corporation's new levered beta after the change in the capital structure

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