Suppose BetLev Inc. has a capital structure with 61 percent debt and 39 percent? equity, a? (levered) beta of 1.31 ?, and a corporate tax rate of 35 percent. Estimate the unlevered beta of BetLev. Now suppose BetLev wishes to have a target capital structure of 51 percent debt and 49 percent equity. What will be its levered beta at the target capital? structure?
The unlevered beta is . ?(Round to three decimal? places.)
The levered beta is . ?(Round to three decimal? places.)