Data for dana industries is shown below now dana acquires


Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 35%. In addition, expected inflation increases by 2.40%. What is the stock's new required rate of return?

Initial beta           1.00

Initial required return (rs)            10.20%

Market risk premium, RPM         6.00%

Percentage increase in beta        35.00%

Increase in inflation premium, IP              2.40%

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Financial Management: Data for dana industries is shown below now dana acquires
Reference No:- TGS01215400

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