Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 30%. In addition, expected inflation increases by 2.00%. What is the stock's new required rate of return?
A) 14.00%
B) 14.70%
C) 15.44%
D) 16.21%
E) 17.02%

Question

Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 30%. In addition, expected inflation increases by 2.00%. What is the stock's new required rate of return? 
A) 14.00% 
B) 14.70% 
C) 15.44% 
D) 16.21% 
E) 17.02%

Quizplus · Accepted Answer

The Answer of Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 30%. In addition, expected inflation increases by 2.00%. What is the stock's new required rate of return? 
A) 14.00% 
B) 14.70% 
C) 15.44% 
D) 16.21% 
E) 17.02%

Data for Dana Industries Is Shown Below