Question: 17. CCC Corp has a beta of 1.5 and is currently in equilibrium_ The required rate of return on the stock is 12.00% versus a

 17. CCC Corp has a beta of 1.5 and is currently

17. CCC Corp has a beta of 1.5 and is currently in equilibrium_ The required rate of return on the stock is 12.00% versus a required return on an average stock of 10.00%. Now the required retum on an average stock increases by 30.0% (not percentage points). Neither betas nor the risk-free rate change. What would CCC's new required return be? Do not round your intermediate calculations a 16.34% b 18.15% 1419% d 16.50% e 14.69%

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