Calculate the required rate of return for best inc

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Calculate the required rate of return for Best Inc., assuming that (1) investors expect a 3% 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 1.2, and (5) its realized rate of return has averaged 10.0% over the last 5 years.

Please show all calculations. Please do not handwrite anything.

Reference no: EM132952875

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