What is the companys new required rate of return

Reference no: EM13261587

Mikkelson Corporation's stock had a required return of 10.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. 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.) 16.25% 13.66% 17.07% 16.66% 11.88%

Reference no: EM13261587

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