Question $26$

$20$ pts

FINA $2201$ Enterprise $($a publicly traded company$)$ has a beta of $1\mathrm{.}5.$ The required rate of return on the stock is $12\mathrm{.}00\%$ versus a required return on an average stock $($hint: the market$)$ of $10\mathrm{.}00\%.$ Now the required return on an average stock increases by $30\mathrm{.}0\%($not percentage points$).$ Neither betas nor the risk$-$free rate change. What would FINA $2201$ Enterprise's new required return be$?$ Show all work for partial credit.