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22nd Century Brewing has 3 divisions: beer production, packaging, and entertainment and is an all-equity firm. The beta for the beer production division is 0.5.
22nd Century Brewing has 3 divisions: beer production, packaging, and entertainment and is an all-equity firm. The beta for the beer production division is 0.5. The beta for the packaging division is 0.8. The beta for the entertainment division is 1.9. The entertainment division is evaluating a new project. The risk-free rate is 2%. The market risk premium is 8.6%. What is the appropriate opportunity cost to use when evaluating the new project?
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