Calculate the required rate of return for manning enterprise

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Reference no: EM132002174

Calculate the required rate of return for Manning Enterprises assuming that investors expect a 3.6% rate of inflation in the future. The real risk-free rate is 1.25%, and the market risk premium is 3%. Manning has a beta of 1.6, and its realized rate of return has averaged 10.5% over the last 5 years. Round your answer to two decimal places.

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Reference no: EM132002174

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