a Karman has three divisions. One is in athletic wear, one in snowboard equipment, and the last one in fashion wear. The company has identified comparable companies in these lines of business whose stocks are publicly traded. Karman has estimated that the systematic risks of its three divisions based on these comparable companies as shown in Table 2. Karman has a beta of 1.2 with the expected return on market index of 11% and risk-free rate of 5%. Table-2 shows the six projects (below) that are in each division and their risk class that are different than the company. Tax rate 25% 1. Which projects should be accepted with the corporate cost of capital? 2. Which projects are accepted with the project's cost of capital? | 3. What would be the beta of the company if Karman adopts all profitable project based on your selection of the project in Part-2 2? 4. Graph the result of sections (1) and (2) and discuss the results. Projects Division IRR Beta Investment 1 Graphics 17% 2.2 $10,000,000 2 Paint 18% 1.7 $20,000,000 3 Graphics 16% 1.3 $15,000,000 4 Paint 13% 1 $25,000,000 5 Leisure 10% 1.1 $30,000,000 6 Leisure 16% 1.2 $20,000,000 Total Investments $120,000,000