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Your firm has a beta of 1.3, a current stock price of $45, and you just paid a dividend of $1.25. You are considering a

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Your firm has a beta of 1.3, a current stock price of $45, and you just paid a dividend of $1.25. You are considering a new project that would raise your beta to 1.6. If the risk-free rate is 2% and the market risk premium is 6%, what growth rate must the new project have to make it feasible? A. 3.91% B. 8.82% C. 4.02% D. 8.58%

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