A company$$s stock had a required return of $11\mathrm{.}50\%$ last year, when the risk$-$free rate was $5\mathrm{.}50\%$ and the market risk premium was $4\mathrm{.}75\%.$ Now, suppose there is a shift in investor risk aversion, and the market risk premium increases by $2\mathrm{.}00\%.$ The risk$-$free rate and the beta remain unchanged. What is this company$$s new required return $($round your answer to two decimal places$)?$ You are required to show the following three steps for each problem $($sample problems and solutions are provided for guidance$)$: $($i$)$ Describe and interpret the assumptions related to the problem. $($ii$)$ Apply the appropriate mathematical model to solve the problem. $($iii$)$ Calculate the correct solution to the problem.