Refer to the following pro forma financial statements for ABC Corp. At the end of 2014 you are valuing ABC Corp. and are calculating a 2018 terminal value based on a liquidation scenario. What would the terminal value be in present value (2014) terms? Assume that the resale value of PP&E is 500 and that the appropriate discount rate is 10%.

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.