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Given the following two companies and the common assumptions below: CaffeinatedNation Current Share Price $ 3 9 . 7 7 2 Analysts collectively think CaffeinatedNation

Given the following two companies and the common assumptions below:
CaffeinatedNation
Current Share Price
$39.772
Analysts collectively think CaffeinatedNation will be able to grow earnings at 12.000% percent for each of the next five years.
They further expect, after Year 5, CaffeinatedNation will grow earnings for the foreseeable future at 4.000% per year.
The analysts also calculate CaffeinatedNation's equity beta as 0.80.
Assume the company has 1,000,000,000 shares issued and outstanding, and
recently paid total dividend $1,810,000,000
GlitterSplitter Inc.
Current Share Price $39.852
Analysts reviewed GlitterSplitter's recent financial reports and estimated the following:
Common Assumptions:
Market Risk Premium ,7.00%
Real Risk-Free Rate ,2.00%
Each company's Current Share Price is exactly the same as the respective current theoretical price.
Q1. What is the implied Required Return for GlitterSplitter Inc.? (round to the nearest .01% or 0.0001 as decimal)
hint: use the CAPM with equity beta
Q2. What is the implied Required Return for CaffeinatedNation? (round to the nearest 0.01%0.0001 as decimal)
hint: use the CAPM with asset beta
Q3. What is the Average Implied Inflation Rate? (round to the nearest one-tenth of a percent or 0.001 as decimal)
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