OldTime, Inc., is a mature firm operating in a very stable market. Earnings growth has averaged about 3.2% for the last dozen years, just staying in line with inflation. The firm’s weighted-average cost of capital is 8%, much lower than most firms. John Storms has just been hired as OldTime’s new CEO and wants to turn what he calls a “cash cow” into a “growth company.” Storms wants to reduce the dividend pay-out and use the resulting retained earnings to fund the firm’s expansion into new product lines. OldTime’s historical beta has been about . . With the CEO’s changes, what will most likely happen to OldTime’s beta and the required return on investment in its shares?