Question: FML Corp is debt and equity financed, and is considering changing its capital structure from its current structure to the proposed capital structure. Relevant details

FML Corp is debt and equity financed, and is considering changing its capital structure from its current structure to the proposed capital structure. Relevant details are presented in the table below. What is the beta of the firm's equity under the proposed capital structure? Write your answer to two decimal places.

Current Proposed

Weight of Equity 100% 83%

Beta of equity 2.0 ???

Cost of debt N/A 4%

Risk-free rate 4%

Tax rate 24%

Market Risk Premium 5%

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