Porter plumbings stock had a required return of 1120 last, Ask an Expert

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Porter Plumbing's stock had a required return of 11.20% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 1.5%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?

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Financial Management, Finance

Category:- Financial Management
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