Indell stock has a current market value of $120 million and a beta of 1.70. Indell currently has? risk-free debt as well.
The firm decides to change its capital structure by issuing $51.06 million in additional? risk-free debt, and then using this $51.06 million plus another $10 million in cash to repurchase stock.
With perfect capital? markets, what will the beta of Indell stock be after this transaction?
The beta of Indell stock after the recapitalization is ??? (Round to two decimal places)