Marbela Corporation's stock had a required return of 10.75% last year, when the risk-free rate was 5.4% and the market risk premium was 5.5%. Now suppose the market risk premium declines by 1.5%. The risk-free rate and Marbela's beta remain unchanged. What is the company's new required return?

Answer rating: 100% (QA)

Riskfree rate 550 Old market risk ... View the full answer