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2. You are a financial analyst for Orange Inc. You have been asked to calculate the required rate of return for this company. The risk

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2. You are a financial analyst for Orange Inc. You have been asked to calculate the required rate of return for this company. The risk free rate is 5%. The return on the market is 9% and Orange Inc. has a beta of 1.3. a) Calculate the required rate of return for Orange Inc. b) Assume inflation increases by 1%. Calculate the new required rate of return for Orange Inc. c) Back to the original information (ignore part b), assume the risk of the firm changes, decreasing the beta to .75. Calculate the new required rate of return for Orange Inc

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