9. Adjusting the cost of capital for risk Aa Aa Divisional Costs of Capital Newtown Propane currently has only a wholesale division and uses only equity capital; however, it is considering creating marketing and retail divisions. Its beta is currently 1.1. The marketing division is expected to have a beta of 1.9, because it will have more risk than the firm's wholesale division. The retail division is expected to have a beta of 0.4, because it will have less risk than the firm's wholesale division. The risk-free rate is 4.4%, and the market-risk premium is 6.4%. Based on this information, fill in the missing information in the following below: Cost of Capital Wholesale division Marketing division Retail division 11.44% 4.40% 8.80% 9.24% If 60% of Newtown Propane's total value ends up in the wholesale division, 25% in the marketing division, and 15% in the retail division, then its investors should require a return of Brade i New Save & Continue 9. Adjusting the cost of capital for risk Aa Aa Divisional Costs of Capital Newtown Propane currently has only a wholesale division and uses only equity capital; however, it is considering creating marketing and retail divisions. Its beta is currently 1.1. The marketing division is expected to have a beta of 1.9, because it will have more risk than the firm's wholesale division. The retail division is expected to have a beta of 0.4, because it will have less risk than the firm's wholesale division. The risk-free rate is 4.4%, and the market-risk premium is 6.4%. Based on this information, fill in the missing information in the following below: Cost of Capital Wholesale division Marketing division Retail division 16.56% 6.96% If 60% of Newtown Propane's total value ends up in the wholesale division, 25% in the marketing division, and 15% in the retail division, then its investors should require a return of 13.38% 16.83% 14.93% 12.08%