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Greshak Company has a beta coefficient of 1.50 and a required rate of return of...

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Finance

Greshak Company has a beta coefficient of 1.50 and a required rate of return of 12.0%. The equity risk premium is currently 6.0%. If the inflation premium increases by 2.0%, and Greshak's business model risk increases its beta by 20%, what will be the companys new required rate of return?

a. 15.80%

b. 14.75%

c. 20.50%

d. 17.75%

e. 14.00%

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