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What is the company new required rate of return

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Mikkelson Corporation's stock had a required return of 4.85% last year, when the risk-free rate was 2% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2 percentage points. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.) Do not round your intermediate calculations.

Reference no: EM133123683

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