3.0 Points Your firm has a beta of 1.5 and just paid a dividend of $2.20 that is expected to grow at 5%. You are considering starting a major new project to diversity your firm. This project would cause your beta to fall to 1.2 but also reduce your growth rate to 3.5%. If the risk-free rate is 2% and the expected market return is 8%, should you undertake the new project? A. Yes B. No C. Not enough information to answer Reset Selection Mark for Review What's This? Previous Next Ulilo