5. The Sprouts-N-Steel Company has two divisions: health foods and specialty metals. Each division employs debt equal to 45 percent and preferred stock equal to 10 percent of its total requirements, with equity capital used for the remainder. The current borrowing rate is 15 percent, and the company's taxi is 55 percent. At present, preferred stock can be sold for 16 percent. Sprouts-N-Steel wishes to establish a minimum return standard for each divi based on the risk of that division. This standard then would serve as the tran price of capital to the division. The company has thought about using the cap asset pricing model in this regard. It has identified two samples of companie with modal value betas of 0.3 for health foods and 1.3 for specialty metals. (Assume that the sample companies had similar capital structures to that of Sprouts-N-Steel.) The risk-free rate is currently 27 percent and the expected return on the market portfolio 11 percent. Using the CAPM approach, what weighted average required returns on investment would you recommend fc these two divisions