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Capital by issuing new bonds

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With increasing competition, your firm is considering raising more capital by issuing new bonds. This will increase the company's debt to about 30% of capital available. With an unlevered beta of 1.09 and a tax rate of 31%, what is an estimate of the new stock beta after the and issue?

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.

Reference no: EM132281227

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