You are analyzing Burberry, an upscale retailer, and find that the regression estimate of the firm's beta is 0.85; the standard error for the beta estimate is 0.55. You also note that the average unlevered beta of comparable specialty retailing firms is 1.20. If Burberry has a debt/equity ratio of 18%, estimate the beta for the company based on comparable firms. (The tax rate is 40%.)

Round your answer to three decimal places.