Enterprises Has a Levered Beta of 1

Multiple Choice

Enterprises has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%.What would Ang's beta be if it used no debt, i.e., what is its unlevered beta?

A) 0.64
B) 0.67
C) 0.71
D) 0.75
E) 0.79