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CaffeinatedNation Current Share Price $39.772 Analysts collectively think CaffeinatedNation will be able to grow earnings at 12.000% percent for each of the next five years.

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CaffeinatedNation Current Share Price $39.772 Analysts collectively think CaffeinatedNation will be able to grow earnings at 12.000% percent for each of the next five years. They further expect, after Year 5, Caffeinated Nation will grow earnings for the foreseeable future at 4.000% per year. The analysts also calculate Caffeinated Nation's equity beta as 0.80 . Assume the company has 1,000,000,000 shares issued and outstanding, and recently paid total dividend $1,810,000,000 Glittersplittersac. Current Share Price $39.852 Analysts reviewed GlitterSplitter's recent financial reports and estimated the following: Common Assumptions: Market Risk Premium 7.00% Real Risk-free Rate 200% Each company's Current Share Price is exactly the same as the respective current theoretical price. Q1. 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 beto Q2. 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 Q3. What is the Average implied Inflation Rate? (round to the nearest one-tenth of a percent or 0.001 as decimal)

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