Martha's Interiors Has a Beta of 1

Martha's Interiors has a beta of 1.2. The market risk premium is 6 % and the risk-free rate of return is 4 %. By how much will the cost of equity increase if the company completes an acquisition such that their company beta rises to 1.4?

A) 0.12 %
B) 0.24 %
C) 1.20 %
D) 2.40 %
E) 2.47 %