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Business, 11.10.2019 02:00 shywelch123
Porter plumbing's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% 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.)
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Porter plumbing's stock had a required return of 11.75% last year, when the risk-free rate was 5.50%...
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