CCC Corp has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.40% versus a required return on an average stock of 10.00%. Now the required return on an average stock increases by 30.0% (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. 16.12%

b. 19.50%

c. 16.90%

d. 15.40%

e. 13.00%