The BIG company with a 15.3 percent cost of equity is acquiring a competitor, which will increase the BIG company's beta to 1.8. The market risk premium is 9.1 percent and the risk-free rate is 3.6 percent. What effect, if any, will the acquisition have on the BIG's cost of equity capital?

Question 19 options:

	Increase of 1.84 percent
	Decrease of 1.84 percent
	Decrease of 0.78 percent
	Increase of 0.78 percent
	No effect