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CCC Corp has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.50% versus a required
CCC Corp has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.50% versus a required return on an average stock of 10.00%. Now the required return on an average stock increases by 50.0% (not percentage points). Neither betas nor the risk-free rate change. What would CCC's new required return be? Do not round your intermediate calculations. a. 20.00% b. 18.75% C. 17.50% d. 22.50% e. 15.00%
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