Question: pls solve 9 & 10 Question 9 (7 points) Listen Calculate the required rate of return for Mercury Inc. to the nearest.1 Assume that investors
Question 9 (7 points) Listen Calculate the required rate of return for Mercury Inc. to the nearest.1 Assume that investors expect a 2.0 percent rate of inflation in the future. The real risk-free rate is equal to 5.4 percent and the market risk premium is 10.0 percent. Mercury has a beta of 0.7, and its realized rate of return has averaged 15.4 percent over the last 5 years. Your Answer: Answer Question 10 (7 points) 40 Listen Calculate the required rate of return for Everest Expeditions Inc, assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 1.00, and (5) its realized rate of return has averaged 15.0% over the last 5 years. 11.40% 10.29% 12.00% 10.83%
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