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What is the company new required rate of return

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Barngrover Corporation's stock had a required return of 11.00% last year, when the risk-free rate was 3.50% and the market risk premium was 5.00%. Then an increase in investor risk aversion caused the market risk premium to rise by 1.50% from 5.00% to 6.50%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?

Reference no: EM132459441

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