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Open Ended Number 3 Use the following information to answer the three questions below. note: round intermediate values to no fewer than four decimal places

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Open Ended Number 3 Use the following information to answer the three questions below. note: round intermediate values to no fewer than four decimal places Given the following two companies and the common assumptions below: Caffeinated Nation Current Share Price $39.772 Analysts collectively think Caffeinated Nation will be able to grow earnings at 12.000% percent for each of the next five years. They further expect, after Year 5, Caffeinated Nation will grow earnings for the foreseeable future at 4.000% per year. The analysts also calculate Caffeinated Nation'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 Aswumptions: MarketRiskPremiumRealRisk-freeRate7.0002.000 Gach company's Current Share Price is exactly the same as the respective current theotetical price. Q1. What is the implied Required fleturn for Glittersplitter Inc.? (round to the nearest. 01 or 0.0001 as decimal) hint: wie the CAPM with equity beta Q2. What is the implied Required Return for Caffelnated Nation? (round to the nearest .015 or 0.0001 as decimal) hint vie the CAPM with asset beto Q3. What is the Average implied inflation Rate? (round to the nearest ene-tenth of a percent or o. oos as decimal)

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