Determine the required rate of return

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1. Try to determine the required rate of return on Tilden Woods Corporation’s common stock. The firm’s beta is 0.89. The rate on a 10-year Treasury bond is 2.71 percent, and the market risk premium is 6.03 percent. Round the answers to two decimal places in percentage form.

2. Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rates of the two currencies against the U.S. dollar.

Reference no: EM131975173

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