Go Green, Inc. currently pays an annual dividend of $.8 a share. The firm has a beta of 1.2 for its stock. All else equal, according to the security market line approach, the firm's cost of equity will be increased with _________________.

Multiple Choice

• a reduction in the market rate of return

• an increase in the firm's beta

• an increase in the firm's dividend amount

• a reduction in the firm's dividend amount

• an increase in the risk-free rate