$12.$ Information about Timothy Manufacturing Corporation and the market is shown below. Assume that Timothy Manufacturing acquires some risky assets that cause its beta increase by $30\%.$ In addition, expected inflation increases by $2\%.$ What is the stock$$s new required rate of return? $(5)$

Initial beta $1\mathrm{.}00$

Initial required return $($rs $)9\mathrm{.}90\%$

Market risk premium $($RPM$)5\mathrm{.}00\%$

Percentage increase in beta $25\%$

Increase in inflation premium $($IP$)1\mathrm{.}50\%$