Amalgamated Products has two operating divisions, foods and electronics.

The firm has $$20$ M of risk$-$free debt outstanding.

The market value of its equity is $$30M.$

The risk$-$free rate is $4\%$ and the market risk premium is $8\%.$

There are no corporate taxes.

The equity beta is $2\mathrm{.}9.$ IS

The electronics division is financed for half by debt of its total value.

The food division is financed $100\%$ by equity.