8.4

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): TRF = 2%; r = 7%; RPM = 5%, and beta = 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 1% but there is no change in investors' risk aversion, what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. % Assume now that there is no change in inflation, but risk aversion increases by 1%. What is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. If inflation increases by 1% and risk aversion increases by 1%, what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. ofc