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297 . Production Unlimited has an overall beta of . 9 2 and a cost of equity of 10. 8 percent for the firm overall

image text in transcribed 297 . Production Unlimited has an overall beta of . 9 2 and a cost of equity of 10. 8 percent for the firm overall .The firm is 100 percent financed with common stock . Division A within the firm has an estimated beta of1. 47 and is the riskiest of all of the firm's operations . What is an appropriate cost of capital for division Aif the market risk premium is 6 percent ?A . 9. 9 percentB. 1 1. 6 percentC. 14. 1 percentD. 15. 9 percentE. 16. 7 percent

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