Question: Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF= 4%; rM= 10%; RPM= 6%, and beta = 1.4 What

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

rRF= 4%; rM= 10%; RPM= 6%, 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 3% 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 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 3% 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.

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