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Discount Retailers has an overall beta of .96 and a cost of equity of 10.4% for the firm overall. The firm is financed soley by

Discount Retailers has an overall beta of .96 and a cost of equity of 10.4% for the firm overall. The firm is financed soley by common stock. Division A within the firm has an estimated beta of 1.13 and is the riskiest of all of th firms divisions. What is an appropriate cost of capital for division A if the market risk premium is 5%?

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