You would like to estimate the unlevered beta of Schwartz Industries (SI). SI’s value of outstanding equity is $365.45 million, and you have estimated its beta to be 1.2. SI has fouryear zero-coupon debt outstanding with a face value of $200 million that currently trades for $134.54 million. SI pays no dividends and reinvests all of its earnings. The four-year risk-free interest rate is 5.13%. Use the Black-Scholes formula to estimate the unlevered beta of the firm.