Mikkelson Corporation's stock had a required return of 10.45 % last year, when the risk-free rate was 2.50 % and the market risk premium was 7.49 %. 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.)