Your company has a current beta of 1.58. The market risk premium is 7.5 percent and risk free rate is 3.2 percent. Your company has a current beta of 1.58. The market risk premium is 7.5 percent and risk free rate is 3.2 percent. By how much will the cost of equity increase if the company expands its operations such that the company beta rises to 2.10? Calculate the following returns: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56):

1) Increase in cost of equity