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Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real
Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.50, and (5) its realized rate of return has averaged 15.0% over the last 5 years.Do not round your intermediate calculations.
- 16.77%
- 20.09%
- 21.65%
- 15.80%
- 19.50%
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