ABC Pharmaceuticals (ABC) consists of three subsidiaries, A, B, and C. You are negotiating to buy subsidiary C. Subsidiary A and B each contribute to 40% of ABC Pharmaceuticals market value and have betas of 0.8 and 1.4, respectively. The company as a whole has a beta of 1.0. The current risk-free rate is 6% and the market risk premium is 6%.

1.What is the beta of subsidiary C?

2. If you end up buying it, what would be C's opportunity cost of capital?

(Your answer should be a number in percentage form)