Please determine the required rate of return for DJMH Inc., assuming that (1) investors expect a...
Please determine the required rate of return for DJMH Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 0.96, and (5) its realized rate of return has averaged 15.0% over the last 5 years. Provide your answer as a percentage to ((((1 decimal place.)))
Homework Answers
determine the required rate of return for DJMH Inc
=real risk-free rate+rate of inflation+(market risk premium*beta)
=3.0%+4.0%+(5.0%*0.96)
=11.8%
the above is answer..
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