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  3. indell stock has a current market value of $120 mi

Indell stock has a current market value of $120 million and a beta of 2.00....

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Finance

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Indell stock has a current market value of $120 million and a beta of 2.00. Indell currently has risk-free debt as well. The firm decides to change its capital structure by issuing $32.83 million in additional risk-free debt, and then using this $32.83 million plus another $18 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.)

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