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%

The correct option is D

Explanation:

The formula to compute the required rate of return is:

Required rate of return of Barker = (Risk free rate + Expected Inflation rate) + (Market Risk premium × Beta

                                                       = (2.00% + 3.00%) + (4.70 %× 1.10)

                                                       = 5 %+ 5.17%

                                                       = 10.17%

Therefore, the required rate of return of Barker is 10.17.%

the answerr would be 1

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.