What will be practical desks new required rate of return


Question: Practical Desks Inc. has a beta coefficient of 0.7 and a required rate of return of 15 percent. The market risk premium is currently 5 percent. If the inflation premium increases by 2 percentage points, and Practical Desks acquires new assets which increase its beta by 50 percent, what will be Practical Desks' new required rate of return?

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