(b) Now suppose the Johnson Corporation has decided to invest in projects of this type. These projects now constitute 10% of the overall value of the Johnson Corporation. Given that its debt/equity ratio and the beta of its debt remain unchanged, what will the beta of Johnson's equity be now? 5.) Altria is reexamining the costs of capital it uses to decide on investments in its two primary businesses-food and tobacco. The two divisions have about the same market value. Altria has an equity beta of 0.95 and a debt/equity ratio of 25%. The company's debt is priced to yield an expected return of 8%. The average equity beta of publicly traded firms in the tobacco business is 1.2, the average debt beta is 0.3, and the average debt/equity ratio of such firms is 20%. The average equity beta of publicly traded firms in the food business is 0.9, the average debt beta is close to zero, and the debt/equity ratio of such firms is 80%. The current interest rate is 7.1% Estimate the cost of capital for each of the two businesses