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

Multiple Choice

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?
$$\begin{array} { l r } \text { Inttal beta } & 10.00 \% \\\text { Initial required return ( } \mathrm { s } . & 6.00 \% \\\text { Market risk premrium RP } & 30.00 \% \\\text { Percentage increase in beta } & 2.00 \%\end{array}$$

A) 14.00%
B) 14.70%
C) 15.44%
D) 16.21%
E) 17.02%