5. 4 2 Questions 2 CCC Corp has a beta of 1.5 and is currently in...
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5. 4 2 Questions 2 CCC Corp has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.40% versus a required return on an average stock of 10.00%. Now the required return on an average stock increases by 20.0% (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 O 12.00% Shot 07 AM O O b. 14.88% 7 O c 14.40% 8 O Od 15.40% Oe 18.00% 5. 4 2 Questions 2 CCC Corp has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.40% versus a required return on an average stock of 10.00%. Now the required return on an average stock increases by 20.0% (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 O 12.00% Shot 07 AM O O b. 14.88% 7 O c 14.40% 8 O Od 15.40% Oe 18.00%
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