A common stock currently has a beta; of 1.3, the risk-free rate is an annual rate of 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate per-share benefits of $5.20 during the coming period. A toxic spill results in a lawsuit and potential fines, and the beta of the stock jumps to 1.6. The new equilibrium price of the stock

A. will be $37.68

B. will be $43.33

C. cannot be determined from the information given

D. will be $33.33