You found three independent firms solely engaging in the same business of your division.Firm A has a beta of 1.7 and D/E of 1.3, firm B has a beta of 1.4 and D/E of 1.1, and firm C has a beta of 1.0 and D/E of 0.7.

Your division's D/E is 1.2.The tax rate is 40%.The before tax cost of debt is 9%.The risk free rate is 5% and the market return is 13%.

What is the average unlevered beta of the business?

a.0.83

b.0.86

c.0.89

d.0.92

e.0.80