For this problem, all M&M assumptions apply. The tax rate is 40%. After a successful college football career, Tim Turbo partnered with Danny Waffle (naming themselves TD Industries) to manufacture and distribute fruit pies. On 1/1/2018, the company had one product that generated EBIT of $666,666.67 on 12/31 of each year (forever). The firm has $671,500 in debt outstanding. The debt is perpetual, with an annual coupon rate equal to the risk-free rate. The firm has an asset beta of 1.3525 and an equity beta of 1.50. At that time, the risk-free rate, RF, was 3 percent and the MRP was 5 percent. The firm had 100,000 shares outstanding, and all earnings were (and will always be) paid out as dividends on 12/31 of each year. As you can calculate, using CAPM for equity required returns, the firm had a price / share of $36.94. On 1/2/2018 at 8:00 a. m., TD announced a new pie product: The project will require the company spend $500,000 to purchase The Buckeye Grinder 2100, a buckeye mashing machine. For tax purposes, the machine will not be depreciated since it will last forever. No working capital is required. The project will increase the company's EBIT by $133,333.33 a year forever, starting on 12/31/2018 The project has an asset beta of 1.10 TD Industries also announced that it will issue $1,100,000 in new equity. $500,000 will be used to finance the new project. The balance will be used to retire debt at face value. When the market opened at 9:30a, the price had changed as expected, increasing to $39.96 per share. What was the equity beta after the entire transaction was complete? Enter your answer to two decimal places, truncated. For example, if your answer is 1.9558, enter "1.95'.