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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

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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 14.7% O O 13,5 % O 171 % 15.9 % O O 15.3%

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