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10) Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market riak premium was 4.75%.

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10) Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market riak premium was 4.75%. Then an increase to lovestor riak aversion caused the market vak 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? .. 14.38% . 11.75% b. 14.74% 5.50+.(6.75 -5.50) = 6.75 c. 15.11% d. 15.49% e. 15.87% A 25-year, 51,000 per value bond has an 8.5% annual payment coupon. The bond currently sells for $925, the yield to maturity remained its current rate, what will the price be 3 years from now a. $384.19 b. $906.86 q. $930.11 d. $953.36 e. $977.20

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