Question: Stephens Electronics is considering a change in its target capital structure, from 25% debt to 60% debt. The risk-free rate, rRF, is 5.0%, the market

Stephens Electronics is considering a change in its target capital structure, from 25% debt to 60% debt. The risk-free rate, rRF, is 5.0%, the market risk premium, RPM, is 6.0%, and the firms tax rate is 40%. Currently, the cost of equity, rs, is 11.5%. Based on the Hamada formula the firm's unlevered beta is . (Show two decimals.)

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