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Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.6% rate of inflation in the future. The real risk-free
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.6% rate of inflation in the future. The real risk-free rate is 2.0%, and the market risk premium is 5.5%. Mudd has a beta of 1.2, and its realized rate of return has averaged 15.0% over the past 5 years. Round your answer to two decimal places.
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
9780077506902, 78025540, 77506901, 978-0078025549
