Estimate the opportunity cost of increasing shoe production from Point A 2 points by 10,000 pairs. Estimate the opportunity cost of increasing shoe
production from Point B by 10,000 pairs. Compare the two opportunity
costs, and explain why they might differ.

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.