simpson inc. is considering a vertical merger with the lachey company. simpson currently has a required return of 11%, while lachey's required return is 15%. the market risk premium is 5% and the risk-free rate is 5%. assume the market is in equilibrium. if simpson is going to make up 67% of the new firm (and lachey will comprise the remaining 33%), what will be the beta of the new merged firm? there will be no additional infusion of debt in the merger.
