Question: DA Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 50%. In addition, expected
DA Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 50%. In addition, expected inflation increases by 2.00%. What is the stock's new required rate of return? Initial beta 1.00 clar COVI Initial required return (1) 10.50% Market risk premium. RPM 6.00% Ty Percentage increase in beta 50.00% Increase in inflation premium. IP 2.00%
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