Firm H is awarded a contract to provide services to the US government. The week the contract is awarded the return on firm H's stock is -2%. The return on the overall stock market is also -2% in this week. No other firm-specific information about firm H arrives that week and no dividends are paid. The beta of firm H's stock is 1.48. Firm H has 15 million shares outstanding and they traded at $10 per share at the end of the previous week. Assume the riskless rate is zero and the CAPM holds.What is the change, in dollars, in the value of firm H's equity, that was caused by this new contract with the government?

Answer choices:

A decrease of $1.16 million.

An increase of $1.44 million.

A decrease of $1.48 million.

An increase of $0.59 million.

An increase of $2.21 million.