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Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the real
Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the real risk-free rate is 1.0%, (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 13.0% over the last 5 years. Do not round your intermediate calculations. O a. 15.80% Ob. 10.09% O c. 10.50% O d. 11.65% O e. 11.77%
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