(Answered) Oakdale furniture inc has a beta coefficient of 07 and a

Finance

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?

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