Question: Using the information below, calculate the beta that should be used in Sheff's cost of capital calculation. - Current capital structure includes 300.0 equity and

 Using the information below, calculate the beta that should be used

Using the information below, calculate the beta that should be used in Sheff's cost of capital calculation. - Current capital structure includes 300.0 equity and 700.0 debt (information taken from the BS) - The current market capitalization is 900.0 - Target capital structure is 40.0% equity and 60.0% debt - Market risk premium is 6.0% - Risk free rate is 6.5% - Tax rate is 40.0% - Pre-tax cost of debt is 7.5% You don't have an estimate of Sheff's beta. The closest comparable you can find is Jorge, which has a levered beta of 0.9 . Jorge's balance sheet shows 300.0 in debt and 300.0 in equity. Jorge's market capitalization is currently 550.0 . Enter your answer as a positive number, rounded to 1 decimal place

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