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The real rate of return in the economy is 4% and the expected market return is 17.2%. After financing a major risk project that needs
The real rate of return in the economy is 4% and the expected market return is 17.2%. After financing a major risk project that needs financing of 20% of the total capital, the risk premium of the corporation increases from 8.8% to 10.4%. Compute the expected return of the corporation knowing that between 2016-2020 the prices of goods and services in the economy rose by 21.55% and the annual inflation is expected to be constant.
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