Calculate the required rate of return for Climax inc. assuming that (1) investors expect a...
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Calculate the required rate of return for Climax inc. assuming that (1) investors expect a 4.0% rate of inflation in the future (2) the real risk free rate is 3% (3) the market risk premium is 5% (4) the firm has a beta of 2.50 and (5) its realized rate of return has average 15% over the last 5 years. do not round your intermediate calculations
1. 16.77%
2. 20.09%
3. 21.65%
4. 15.80%
5. 19.50%
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