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Calculate the required rate of return for a company assuming that (1) investors expect a 3.0% rate of inflation in the future, (2) the real
Calculate the required rate of return for a company assuming that (1) investors expect a 3.0% rate of inflation in the future, (2) the real risk-free rate is 4%, (3) the market risk premium is 6.5%, (4) the firm has a beta of 1.75, and (5) its realized rate of return has averaged 19.0% over the last 5 years. 8.38% O 14.38% O 18.38% O 11.38% O 15.38%
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