Data for Atwill Corporation Is Shown Below A) 1400%
B) 14

question 51

Multiple Choice

Data for Atwill Corporation is shown below. Now Atwill 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?
$$\begin{array} { l r } \text { Inttal beta } & 10.00 \% \\\text { Initial required return ( } \mathrm { s } . & 6.00 \% \\\text { Market risk premrium RP } & 30.00 \% \\\text { Percentage increase in beta } & 2.00 \%\end{array}$$

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

---

Definitions:

Adoption

The acceptance and integration of new ideas, technologies, or products into regular use by consumers or within an organization.

Awareness

The state or level of consciousness where one is informed or cognizant of something, such as a brand, issue, or product.

Trial

A method used in marketing to allow potential customers to try a product or service for a limited time to assess its value or effectiveness.

Promotion-to-Sales Ratio

A metric analyzing the effectiveness of promotional activities by comparing the cost of promotion to the generated sales revenue.