Required return on Stock = Risk-free return + (Market risk premium) (Stock's beta) the investor for risk. debt it uses. Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF=4%;rM=10%;RPM=6%,andbeta=1.4 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % % % If inflation increases by 3% and market risk premium increases by 2%, what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. %