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Data for Oakdale Furniture, Inc

Question 8

Multiple Choice

Data for Oakdale Furniture, Inc. is shown below. Now the expected inflation rate and thus the inflation premium increase by 2.0 percentage points, and Oakdale acquires risky assets that increase its beta by the indicated percentage. What is the firm's new required rate of return? Data for Oakdale Furniture, Inc. is shown below. Now the expected inflation rate and thus the inflation premium increase by 2.0 percentage points, and Oakdale acquires risky assets that increase its beta by the indicated percentage. What is the firm's new required rate of return? A) 14.00% B) 14.70% C) 15.44% D) 16.21% E) 17.02%


A) 14.00%
B) 14.70%
C) 15.44%
D) 16.21%
E) 17.02%

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