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13.12 Exercises 425 9. A company without debt has a division whose divisional discount rate is 12%. (i) If the division constitutes 30% of the

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13.12 Exercises 425 9. A company without debt has a division whose divisional discount rate is 12%. (i) If the division constitutes 30% of the company's value, and the com- pany's overall discount rate is 9%, determine the discount rate for the other divisions. (ii) If the company's beta is 1.2 and the division's beta is 0.8, determine the beta for the other divisions

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