Question: please round final answer to 4 decimal places Currently, Bloom Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Blooms debt

please round final answer to 4 decimal places

Currently, Bloom Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Blooms debt currently has an 9.4% yield to maturity. The risk-free rate (r_RF) is 2%, and the market risk premium (r_M r_RF) is 6.6%. Using the CAPM, Bloom estimates that its cost of equity is currently 16.8%. The company has a 25% tax rate.

What would Blooms beta be if the company had no debt in its capital structure? (That is, what is Blooms unlevered beta, b_U?)

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