Question: risk (hence its beta coefficient) through changes in the composition of its assets and through changes lin the amoust of debt tore or less risk
risk (hence its beta coefficient) through changes in the composition of its assets and through changes lin the amoust of debt tore or less risk averse. A firm can infiumce markse Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rME=5%;rM=8%;RPM=3%,andbeta=1 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' risk aversion, what is wce's required rate of return now? Do not round intermediatn caiculabiant. Aound your answer to two decimal places. Assume now that there is no change in inflation, but risk aversion increases by 1%. What is wCes required rate of return now? Do not round intermedate chiculabons. Round rout answer to two decimal places. If inflation increases by 1% and risk aversion increases by 1%, what is WCE's required rate of retum now? Do not round intermedate calculations. Rlound your anwer to two decimal places
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