CCC Corp Has a Beta of 1

Multiple Choice

CCC Corp has a beta of 1.5 and is currently in equilibrium.The required rate of return on the stock is 12.00% versus a required return on an average stock of 10.00%.Now the required return on an average stock increases by 30.0% (not percentage points) .Neither betas nor the risk-free rate change.What would CCC's new required return be?

A) 14.89%
B) 15.68%
C) 16.50%
D) 17.33%
E) 18.19%