3. Problem 14.04 (Unlevered Beta)

Hartman Motors has $20 million in assets, which were financed with $5 million of debt and $15 million in equity. Hartman's beta is currently 0.7, and its tax rate is 20%. Use the Hamada equation

to find Hartman's unlevered beta, bu. Do not round intermediate calculations. Round your answer to two decimal places.