Data for Atwill Corporation is shown below.Now Atwill 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? $$\begin{array} { l r }
\text { Initial beta } & 1.00 \
\text { Initial required return } \left( \mathrm { r } _ { \mathrm { s } } \right) & 10.20 \% \
\text { Market risk premium, RPM } & 6.00 \% \
\text { Percentage increase in beta } & 30.00 \% \
\text { Increase in inflation premium, IP } & 2.00 \%
\end{array}$$
A)14.00%
B)14.70%
C)15.44%
D)16.21%
E)17.02%

Question

Data for Atwill Corporation is shown below.Now Atwill 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? $$\begin{array} { l r } 
\text { Initial beta } & 1.00 \
\text { Initial required return } \left( \mathrm { r } _ { \mathrm { s } } \right) & 10.20 \% \
\text { Market risk premium, RPM } & 6.00 \% \
\text { Percentage increase in beta } & 30.00 \% \
\text { Increase in inflation premium, IP } & 2.00 \%
\end{array}$$
A)14.00%
B)14.70%
C)15.44%
D)16.21%
E)17.02%

Quizplus · Accepted Answer

The Answer of Data for Atwill Corporation is shown below.Now Atwill 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? $$\begin{array} { l r } 
\text { Initial beta } & 1.00 \
\text { Initial required return } \left( \mathrm { r } _ { \mathrm { s } } \right) & 10.20 \% \
\text { Market risk premium, RPM } & 6.00 \% \
\text { Percentage increase in beta } & 30.00 \% \
\text { Increase in inflation premium, IP } & 2.00 \%
\end{array}$$
A)14.00%
B)14.70%
C)15.44%
D)16.21%
E)17.02%

Data for Atwill Corporation Is Shown Below A)1400% B)14

Data for Atwill Corporation Is Shown Below A)1400%
B)14