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Question
Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Barker's required rate of return?a. 9.43%
b. 9.67%
c. 9.92%
d. 10.17%
e. 10.42%
Answer
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