Suppose the customer (an auto manufacturer) wants to purchase in lots of 310 and that Bob's Bumpers is able to reduce setup costs to the point where 310 is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity

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.