Consider China Communications Services $($CCS$),$ with a beta of $1\mathrm{.}25,$ Rf of $10$ percent, R$\_\{$M$\}$ of $18$ percent and after$-$tax Rd$(1-$T$)$ of $8$ percent $.$ Firm uses $40$ percent debt and $60$ percent equity $.$ Estimate CCS$\text{'}$s firm wide opportunity cost of capital. However $,$ what if CCS has three very different divisions? Furniture division is a very mature industry with low risk; Paper division that is closer to the average risk of the firm ; and Data Services division is very risky $.$ Due to the differences in risk, the divisions have very different betas; $0\mathrm{.}75$ for furniture $,1\mathrm{.}25$ for paper and $2\mathrm{.}0$ for data services $.$ The financing proportions also differ $,$ with the more risky divisions being less able to employ as much debt financing. The furniture division will use $50$ percent debt and $50$ percent equity $,$ the paper division will use the same capital structure as the company average of $40$ percent debt and $60$ percent equity $,$ while the data systems division will use $20$ percent debt and $80$ percent equity. Estimate Cost of Capital for each division $?$