Buy It Cheap has an overall beta of 0.88 and a cost of equity of 11.2% for the firm overall. The firm is all equity financed. Division A within the firm has an estimated beta of 0.56 and is the least risky of all of the firm's operations. What is an appropriate cost of capital for division A if the market risk premium is 5%?

- 14.25%

- 10.88%

- 9.60%

- 10.05%

- 11.80%