Data for Atwill Corporation Is Shown Below

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?
Initial beta
1) 00
Initial required return (r_s)
10) 20%
Market risk premium,RP_M
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%