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? Initial beta
1) 00
Initial required return (rs)
10) 20%
Market risk premium,RPM
6) 00%
Percentage increase in beta
30) 00%
Increase in inflation premium,IP
2) 00%
A) 14.00%
B) 14.70%
C) 15.44%
D) 16.21%
E) 17.02%
Correct Answer:
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