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Porter Plumbing's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. The

Porter Plumbing's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. The firm's beta is 1.316. Then an increase in investor risk aversion caused the market risk premium to rise to 6.75%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?

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