1) . Kevin Murkie of Murkie Research is evaluating True Hack Software, Ltd., which is headquartered in London. In 2014, when Murkie was performing his analysis, the company is unprofitable. Furthermore, True Hack pays no dividends on its common shares. Murkie decides to value True Hack by using his forecasts of FCFE. Murkie gathers the following facts and assumptions. A) Solution The required rate of return found with the CAPM is: r = E(Ri) = RF + bi[E(RM).