7. All else constant, which one of the following will increase a company's cost of equity (or required return on equity) if the company computes it using the capital asset pricing model (or security market line) approach. Assume the firm currently pays an annual dividend of $1 per share of stock and has a beta of 1.30. A) A reduction on the dividend amount B) A reduction in the firm's equity beta C) An increase in the market risk premium D) A reduction in the market rate of return