2. Fantastica Holdings (FH) has four divisions: Equity Proportion Division Beta of the firm's assets Auto parts 1.40 35% Fitness products 2.20 30% Packaged foods 0.49 15% Solar technology ? 25% The leverage beta for Fantastica is 1.54. The firm's consolidated capital structure consists of 40 percent debt and 60 percent equity. The Solar Technology division's capital structure is 30 percent debt and 70 percent equity. FH is planning on financing new investments in that division with a capital structure of 20 percent debt and 80 percent equity. The risk-free rate is 2 percent and the market risk premium is 7.8 percent. The tax rate is 25 percent. The pretax cost of debt assigned to the division of 5 percent. a. What is the current equity beta for the Solar technology division? b. What is the unlevered beta for the division? c. What is the target or future beta for the division? d. What is the required rate of return for the equity financed portion of the division's investments? e. What is the divisional cost of capital? f. The division is considering a project with an IRR of 15 percent. Based on your answer to part (e), should the project be adopted