Relever Inc. has a debt-to-equity (D/E) ratio of 0.2; its target D/E is 1.8. Relever currently has an estimated beta of 1.2. Relever's estimated tax rate is 25 percent. What is the estimate of Relever's beta at its target D/E? ?
Relever's beta at its target (D/E)* of 1.8 is estimated to be. ?(Round to three decimal places.)