Piedmont Hotels is an all$-$equity company. Its stock has a beta of $\mathrm{.}88.$ The market risk premium is $7\mathrm{.}5$ percent and the risk$-$free rate is $3\mathrm{.}9$ percent. The company is considering a project that it considers riskier than its current operations so it wants to apply an adjustment of $2\mathrm{.}3$ percent to the project's discount rate. What should the firm set as the required rate of return for the project?