Counts Accounting has a beta of 1.40. The tax rate is 35%, and Counts is financed with 35% debt. What is Counts' unlevered beta? Round your answer to two decimal places.
Levered Beta = Unlevered Beta x (1 + ((1 – Tax Rate) x (Debt/Equity)))
1.40 = Unlevered Beta (1+(1-0.35)(0.35))