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Mikkelson Corporation's stock had a required return of 1 3 . 7 5 % last year, when the risk - free rate was 3 %

Mikkelson Corporation's stock had a required return of 13.75% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.) Do not round your intermediate calculations.
14.07%
14.80%
21.38%
18.64%
18.28%
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