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Risk free rate and the new expected risk free rate

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Reference no: EM131710728

Oakdale Furniture, Inc. has a beta coefficient of 0.7 and a required rate of return of 15 percent. The market risk premium is currently 5 percent. We expect the inflation premium to increase 2 percentage points and Oakdale to acquire assets which will increase its beta by 50 percent.

What was the old risk free rate and the new expected risk free rate?

Reference no: EM131710728

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