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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 12.00% 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 12.00% 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? A. 21.65% B. 19.50% C. 22.43% D. 16.97% E. 21.84% 26)
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