Adjusting the cost of capital for risk

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 $1\mathrm{.}4,$ The marketing division is expected to have a beta of $2\mathrm{.}1,$ because it will have more risk than the firm's wholesale division. The retail division is expected to have a beta of $0\mathrm{.}4,$ because it will have less risk than the firm's wholesale division. The risk$-$free rate is $4\mathrm{.}8\%,$ and the market risk premium is $6\mathrm{.}7\%.$ Based on this infomation, fill in the missing cost of capital information below:

Wholesale division

Marketing division

Retail division

If $70\%$ of Newtown Propane's total value ends up in the wholesale division, $20\%$ in the marketing division, and $10\%$ in the retail division, then its investors should require a retum of

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