The Delta Company Has a Capital Structure of 20% Risky

The Delta Company has a capital structure of 20% risky debt with a β of .9 and 80% equity with a β of 1.7. Their current tax rate is 34%. What is the β for Delta Company?

A) 0.59
B) 0.82
C) 1.06
D) 1.49
E) 1.54