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4 pts Question 21 Questions (A21-A22) are based on the following information Suppose that you have a form with three divisions. Division 1 has 35%

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4 pts Question 21 Questions (A21-A22) are based on the following information Suppose that you have a form with three divisions. Division 1 has 35% of the corporation assets and a bets of 1.5. Division 2 has a bets of 2 and 45% of all assets. Division 3 has beta of 1.1 and the remainder of the assets. The return on the market is 15% and the risk-free rate is SX The standard deviation of the market portfolio's return is 20% and the standard deviation of the division 2's retum is 30% A21. Find the cost of capital of each division. Since you are given no information about debt or preferred stock the corporation is implicitly an all equity firm. The answer is? () R -20% R, -27%, and Ry -16% th) R, -24%, Ry -15%, and Ry -19% led R, -24% Ry -28%, and Ry -16%; (d) R, -25%, Ry -23%, and Ry -18% te) R. -20%, R, -25%, and Ry -16%: O O

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