Calculating levered beta

7. If Hilgart Inc. had no debt in its capital structure, its unlevered beta would be 0.75. However, the firm’s capital structure consists of 55% debt and 45% equity and it has a corporate tax rate of 40%. What is Duffert’s levered beta?

a. 0.885

b. 0.950

c. 1.100

d. 1.300

e. 1.450