Quantitative Problem: You are given the following information for Wine and Cork Enterprises $($WCE$)$:

$r_{RF}=5\%$;$r_M=7\%$;$R_M=2\%,$ and beta $=1\mathrm{.}3$

What is WCE's required rate of return? Round your answer to $2$ decimal places. Do not round intermediate calculations.

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If inflation increases by $2\%$ but there is no change in investors' market risk premium, what is WCE's required rate of return now?

Round your answer to two decimal places. Do not round intermediate calculations.

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Assume now that there is no change in inflation, but market risk premium increases by $1\%.$ What is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations.

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If inflation increases by $2\%$ and market risk premium increases by $1\%,$ what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations.

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