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PLEASE SHOW WORK AND HOW YOU ARRIVED AT ANSER. THANK YOU! What is the required rate of return for Dawsons Inc. if investors expect a

PLEASE SHOW WORK AND HOW YOU ARRIVED AT ANSER. THANK YOU!

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What is the required rate of return for Dawsons Inc. if investors expect a 5 % rate of inflation in the future. The real risk- free rate is 3 % and the market risk premium [Rm-Rf] is 5 %. Dawsons has a beta of 3.0, and its realized rate of return has averaged 15 % over the last five years. [Hint: CAPM question, find nominal Krf first]. O 16% O 20% O 23% O 17% O 18%

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