Parkway Corporation has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.0% versus a required return on an average stock, rM, is 10.0%. Now the required return on an average stock, rM, increases by 45.0% (not percentage points) to 14.5%. Neither betas nor the risk-free rate change. What would Parkway's new required return be? Hint: first find the risk-free rate, rRF. Do not round your intermediate calculations

A. 15.50% B. 18.75% C. 19.25% D. 20.75% E. 22.56%