Trendsetters have a cost of 14.6 percent. the market risk premium is 8.4 percent and the risk-free rate is 3.9 percent. The company is acquiring a competitor, which will increase the company's beta to 2.4. What effect, if any, will the acquisition have on the firm's cost of equity capital?

A.) increase of 1.06%

B.) decrease of 9.46%

C.) decrease of 1.06%

D.) increase of 9.46%