Question: please show all your work, thank you! Problem Solving 1. Dana Industries has a beta of 1 and required rate of return is 10.20%. The

please show all your work, thank you!

Problem Solving 1. Dana Industries has a beta of 1 and required rate of return is 10.20%. The market risk premium is 5.00%. Now Dana acquires some risky assets that cause its beta to increase to 1.5 . In addition, expected inflation increases by 2.00%. Assume the market risk premium doesn't change, what is the stock's new required rate of return? Hint: (I) the first step is to find the risk-free rate CRE: (2) use the equation, rRF=r+IP, to find the risk-free rate rBE

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