Analysts collectively think CaffeinatedNation earnings and dividends will change at an annual rate of -6.0% for each of the next five years. They further expect, after Year 5, CaffeinatedNation will grow earnings for the foreseeable future at 4.000% per year. At the start of Year 6, analysts estimate the fair value of the stock will be $14.925 The analysts also calculate CaffeinatedNation's equity beta as 0.80 . Assume the company has 1,000,000,000 shares issued and outstanding, and recently paid total dividends of $1,810,000,000\ \ GlitterSplitter Inc.\ \ Current Share Price $55.541\ \ Analysts reviewed GlitterSplitter's recent financial reports and determined the following:\ \ EBIT $46.50 million\ \ Interest Expense $6.45 million\ \ Depreciation $10.00 million\ \ Change in Net Working Capital $0.00 million\ \ Capital Expenditures $3.00 million\ \ Dividends Paid $0 million\ \ Growth rate of FCF 3.0%\ \ Tax rate 22.0%\ \ Debt/Equity ratio 0.4\ \ Equity Beta 1.05\ \ Shares Issued and Outstanding 10,000,000\ \ Debt Outstanding $100,000,000\ \ Common Assumptions:\ \ Market Risk Premium 6.00%\ \ Risk-Free Rate = 5.00% and the Real Risk-Free Rate = 2.00%\ \ Each company's current share price is exactly the same as the respective current theoretical price.\ \ \ \ I. What is the implied Required Return for GlitterSplitter Inc.? (round to the nearest .01% or 0.0001 as decimal)\ \ hint: use the CAPM with equity beta\ \ II. What is the implied Required Return for CaffeinatedNation? (round to the nearest .01% or 0.0001 as decimal)\ \ hint: use the CAPM with asset beta\ \ III. What is the Average Implied Inflation Rate? (round to the nearest one-tenth of a percent or 0.001 as decimal)