Piedmont Hotels is an all-equity company. Its stock has a beta of 1.23. The expected return on the market is 9.6 percent and the risk-free rate is 2.7 percent. The company is considering a project that it considers riskier than its current operations so it wants to apply an adjustment of 1.9 percent to the project's discount rate. What should the firm set as the required rate of return for the project? Show your work. Correct answer will not get the full credit if the work leading to the answer is not provided