Question: JK Inc. is also considering a project that has more risk than their normal operations. JK Inc. has a tax rate = 40%, a beta

JK Inc. is also considering a project that has more risk than their normal operations. JK Inc. has a tax rate = 40%, a beta = 0.9 and a before tax cost of debt = 6%. This new project will be financed using a D/E ratio = 0.80. A pure-play firm has been identified that has a beta = 1.9; D/E ratio = 1 and a tax rate = 35%. Calculate the estimated beta for this project. Select one: a. 1.90 b. 0.90 C. 1.68 d. 1.7042 e. 1.1515

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