Greshak Company has a beta coefficient of 1.50 and a required rate of return of...
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Finance
Greshak Company has a beta coefficient of 1.50 and a required rate of return of 12.0%. The equity risk premium is currently 6.0%. If the inflation premium increases by 2.0%, and Greshak's business model risk increases its beta by 20%, what will be the companys new required rate of return?
a. 15.80%
b. 14.75%
c. 20.50%
d. 17.75%
e. 14.00%
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