2. Mikkelson Corporation's stock had a required return of 12.5% last year, when the risk free rate was 3% and the market risk premium was 4.75%. The next year, investor risk aversion caused the market risk 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? (Hint: Find the stock's beta first.) a. 16.50% b. 14.36% c. 13.04% d. 12.87%