presently 0.5 percent. What is the required return on Stock D? % (Give answer as % to 2 decimal places) 15 23 Question 19 Not yet answered Marked out of 3.50 P Flag Question The following are possible statements of about the market risk premium (assume that the risk-free rate remains constant.) 1. If the market risk premium increases by 1 percentage point, then the required return on all stocks will rise by 1 percentage point. 11. If the market risk premium increases by 1 percentage point, then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0. III. If the market risk premium Increases by 1 percentage point, then the required return will increase by 1 percentage point for a stock that has a beta equal to 1.0. Which of the following is most correct? Select one: a. None of the statements are correct. b. Statements I and Ill are correct. c. Statement il is correct. d. Statement is correct. e. Statement illis correct. Question 20 Not yet answered Indiana Corporation is currently 100 percent equity financed but is considering to change its capital structure by issuing long-term debt at a yield to maturity of 9 percent. With the money raised from the debt sale, it plans to use the proceeds to repurchase common stock. The change in capital structure will not change the way it does business or affect its operations, which is earning an overall return on investment