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Question: In 1997 , Boeing announced that it was acquiring McDonnel Douglas, another company involved in Aerospace and Defence business. At the time of the acquisition , the two firms had the following market value and beta. Company Beta Debt Equity FirmValue Boeing 0.95 3980 32438 36418 McDonnel 0.90 2143 12555 14698 If the tax rate is 35%, what is the Beta after acquisition?

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