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New required return-fantasty corp

Fantasty Corp has a beta of 1.6 and is currently in equilibrium. The required rate of return on the stock is 14.00% versus a required return on an average stock of 10.00%. Now the required return on an average stock increases by 30.0% (not percentage points). Neither betas nor the risk-free rate change. What would Fantasty 's new required return be?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: New required return-fantasty corp

Reference No:- TGS0675216

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: New required return-fantasty corp

Reference No:- TGS0675216

Recent Questions Asked Finance Basics

Q : Explain good and bad uses of leverage

Q : Explain program with favorable rate of return

Q : Calculate the internal rate of return of the investment

Q : What was the percent of net fixed assets

Q : New required return-fantasty corp

Q : Utilizing the data collection skills

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