FF/GF- Use Real v. Nominal Required Return?? usually, required, question

himanshumh

On the sample question set, the 3 vingette asks to calc the franchise P/E and intrinsic P/E, the answer has it calc the required return (1/r) using the nominal return, why is this??

- i thought since maybe the forecast of earnings (pro-forma etc) are done usually on a nominal basis that the return should correspond, is this assumption valid?