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What is the company new required rate of return

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Question - Rosenfeld Corporation's stock had a required return of 7.40% last year, when the risk-free rate was 3.00% and the market risk premium was 4.00%. Then an increase in investor risk aversion caused the market risk premium to rise by 1% from 4% to 5%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?

Reference no: EM132898181

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