The Management of Quills and Ink Want to Calculate the Required

Multiple Choice

The management of Quills and Ink want to calculate the required rate of return (ROR) of the company.The following information is available: $$\begin{array} { l l } \text { Risk free rate } & 5.30 \% \\\text { Equity risk premium } & 4.24 \% \\\text { Firm size premium } & 2.16 \% \\\text { Industry risk premium } & 6.50 \% \\\text { Specific company risk premium } & 3.00 \%\end{array}$$ Calculate the ROR of Quills and Ink.

A) 16.96%
B) 21.20%
C) 18.20%
D) 19.40%