Question: Quantitative Problem: You are given the following information for Wine and Cork Enterprises ( WCE ) : r R F = 3 % ; r

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE):
rRF=3%;rM=8%;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' market risk premium, 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 market risk premium 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 market risk premium increases by 1%, what is WCE's required rate of return now? Do not round intermediate calculations. Round
your answer to two decimal places.
%
Quantitative Problem: You are given the following information for Wine and

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