Your firm has a current beta of 2.33 and a capital structure consisting of 18% debt. With profits and cash on the rise in recent years, the board wants to explore the idea of moving to an all-equity firm. An important question is how this will impact shareholders. And one measure of this is the stock beta. So what is an estimate of what the beta will be if the company gets rid of all of its debt? Assume a tax rate of 28%.

Enter your answer as a number rounded to the nearest 2nd decimal. Do not use dollar signs, percentage signs, or commas. Correct answered include an error term of 0.01.

For example, if you calculate a number of 1.3902, you will enter 1.39.