$19$ Enabled: Final Exam $($Section $55)($i$)$

Benson's, Inc. has an overall cost of equity of $10\mathrm{.}24\%$ and a beta of $1\mathrm{.}2.$ The firm is completely financed by common stock. The risk$-$free rate of return is $4\%.$ Wh is an appropriate cost of capital for a division within the firm that has an estimated beta of $1\mathrm{.}5?$