Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 45.0%. In addition, expected inflation increases by 2.00 percentage points. What is the stock's new required rate of return? Do not round your intermediate calculations.

Initial beta	1.00
Initial required return (rs)	9.00%
Market risk premium, RPM	6.00%
Percentage increase in beta	45.00%
Increase in inflation premium, IP	2.00%

a. 11.00%

b. 12.35%

c. 14.60%

d. 13.70%

e. 11.70%