Which of the following is not possible when recording a transaction? a. liabilities increase and assets decrease. b. stockholders' equity increases and assets increase. c. one asset increases and another asset decreases. d. stockholders' equity decreases and assets decrease.

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.