Your firm has a debt-to-asset ratio of 18% and a beta of 1.23. The firm faces a corporate tax rate of 35%. You are considering a recapitalization to increase the debt-to-asset ratio to 37%. Use the Hamada Relationship to estimate the betas of the unlevered firm and at the new higher-debt capital structure. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 0.87.)

What is the unlevered beta?

What is the beta at the new capital structure?