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

Quantitative Problem: You are given the following information for Wine and

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): PRE = 4%; r = 10%; RPM = 6%, and beta = 1.4 What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations. % If inflation increases by 3% but there is no change in investors' market risk premium, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. 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? Round your answer to two decimal places. Do not round intermediate calculations. % If inflation increases by 3% and market risk premium increases by 1%, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. %

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