CCC Corp has a beta of 1.5 and is currently in equilibrium.The required rate of return on the stock is 12.00% versus a required return on an average stock of 10.00%.Now the required return on an average stock increases by 37.5% (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.
A) 19.92%
B) 17.10%
C) 17.45%
D) 17.63%
E) 20.09%

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The Answer of CCC Corp has a beta of 1.5 and is currently in equilibrium.The required rate of return on the stock is 12.00% versus a required return on an average stock of 10.00%.Now the required return on an average stock increases by 37.5% (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.
A) 19.92%
B) 17.10%
C) 17.45%
D) 17.63%
E) 20.09%

CCC Corp Has a Beta of 1