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Calculate the requited rate of return for Mercury Inc., assuming that investors expect a 3.5 percent rate of inflation in the future. The real risk-free

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Calculate the requited rate of return for Mercury Inc., assuming that investors expect a 3.5 percent rate of inflation in the future. The real risk-free rate is equal to 3.7 percent and the market risk premium is 1.5 percent. Mercury has a beta of 1.2 , and its realized rate of return has averaged 11 percent over the last 5 years. 8.00% 7.50% 9.00% 8.50% 7.00%

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