Data for Dana Industries Is Shown Below

question 25

Multiple Choice

Data for Dana Industries is shown below.Now Dana acquires some risky assets that cause its beta to increase by 30%.In addition,expected inflation increases by 2.00%.What is the stock's new required rate of return? Initial beta
1) 00
Initial required return (r_s)
10) 20%
Market risk premium,RP_M
6) 00%
Percentage increase in beta
30) 00%
Increase in inflation premium,IP
2) 00%
​

• A)14.00%
• B)14.70%
• C)15.44%
• D)16.21%
• E)17.02%

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