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

$r_{RF}=4\%$;$r_M=10\%$;$R{P}_M=6\%,$ and beta $=1\mathrm{.}3$

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

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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? Do not round intermediate

calculations. Round your answer to two decimal places.

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Assume now that there is no change in inflation, but 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.

$\%$

If inflation increases by $2\%$ 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.