The beta of Hardrie is 1.3. hardrie is evaluating a merger with Tiffany, a company that has a beta of 0.75. Hardtie stock for Php50 per share and there are 20 million shares outstanding Tiffany's stock sells for Php 70, with only 4 million shares outstanding. 

1. What will be the merged firm’s beta? 

2. Ames Bank decided to lend you Php500,000 today, but you must repay Php623,150 in 4 years. What rate is the bank charging you?