Simpson Inc. is considering a vertical merger with The Lachey Company. Simpson currently has a required...

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Simpson Inc. is considering a vertical merger with The Lachey Company. Simpson currently has a required return of 9%, while Lachey's required return is 14%. The market risk premium is 5.10% and the risk-free rate is 5%. Assume the market is in equilibrium. If Simpson is going to make up 67% of the new firm (and Lachey will comprise the remaining 33%), what will be the beta of the new merged firm? There will be no additional infusion of debt in the merger. Do not round your intermediate calculations. O a. 1.04 Ob. 2.23 O c. 0.78 Od. 1.76 Oe. 1.11 Simpson Inc. is considering a vertical merger with The Lachey Company. Simpson currently has a required return of 9%, while Lachey's required return is 14%. The market risk premium is 5.10% and the risk-free rate is 5%. Assume the market is in equilibrium. If Simpson is going to make up 67% of the new firm (and Lachey will comprise the remaining 33%), what will be the beta of the new merged firm? There will be no additional infusion of debt in the merger. Do not round your intermediate calculations. O a. 1.04 Ob. 2.23 O c. 0.78 Od. 1.76 Oe. 1.11