What is the company new required return

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Marbela Corporation's stock had a required return of 10.75% last year, when the risk-free rate was 5.4% and the market risk premium was 5.5%. Now suppose the market risk premium declines by 1.5%. The risk-free rate and Marbela's beta remain unchanged. What is the company's new required return? (Hint: First calculate the beta, and then find the required return.)

Reference no: EM132459264

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