1. If a new breakthrough in manufacturing technology reduces the cost of producing Blu-ray players by half, what will happen to each of the following: Supply of Blu-ray players Demand for Blu-ray players; and demand for Blu-rays Equilibrium price and quantity of Blu-ray players

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.