You're considering acquiring another firm. It's about one-fourth the size of your firm and has a beta of 3. Your firm's beta is 1.

You're considering acquiring another firm. It's about one-fourth the size of your firm and has a beta of 3. Your firm's beta is 1.2. The risk-free rate of interest is 3%, and the return on the market is estimated to be 8%. If you complete the acquisition, what will the beta of your firm be? Also, what is your firm's required return before and after the acquisition?