5. The Sprouts-N-Steel Company has two divisions: health foods and specialty metals. Each division employs debt equal to 31 percent and preferred stock equal to 10 percent of its total requirements, with equity capital used for the remainder. The current borrowing rate is 16 percent, and the company's tax rate is 41 percent. At present, preferred stock can be sold for 14 percent Sprouts-N-Steel wishes to establish a minimum return standard for each division based on the risk of that division. This standard then would serve as the transfer price of capital to the division. The company has thought about using the capital- asset pricing model in this regard. It has identified two samples of companies, with modal value betas of 0.1 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 13 percent and the expected return on the market portfolio 18 percent. Using the CAPM approach, what weighted average required returns on investment would you recommend for these two divisions