What is WCEs required rate of return now

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Reference no: EM132045514

Quantitative Problem: You are given the following information for Wine and Cook Enterprises (WCE):

rRf= 4%; rM= 7%; RPm= 3%, and beta = 1

What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations. ____%

If inflation increases by 1% but there is no change in investors' risk aversion, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. ___%

Assume now that there is no change in inflation, but risk aversion increases by 2%. What is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermeiate calculations. ____%

If inflation increases by 1% and risk aversion increases by 2%, what is WCE's required rate of return now? Round your asnwer to two decimal places. Do not round intermediate calculations. ____%

Reference no: EM132045514

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