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Buy It Cheap has an overall beta of 88 and a cost of equity of 11.2 % for the firm overall. The firm is 100%

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Buy It Cheap has an overall beta of 88 and a cost of equity of 11.2 % for the firm overall. The firm is 100% financed with common stock Division A within the firm has an estimated beta of 1.34 and is the riskiest of all of the firm's operations What is an appropriate cost of capital for division A if the market risk premium is 5%? Multiple Choice 15.9% 147%

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