ABCs expected rate of return is 12%. The risk-free rate is 6%, and the market risk premium is 8%. The earnings per share this year will be E1 = $4.80; all earnings will be paid out as dividends. We value the stock using the perpetuity formula P0 =E1 / r. Thus XQV is trading at $40. The company enters into a new business. Its earnings are expected to stay the same, but its beta is going to increase by 50%. The old beta was ...................................... The new beta is ..................................... The new expected rate of return on the stock is ............................... % The new stock price will be $ ...........................