Division

Asset

Beta

Next Period's Expected Free Cash

Flow ($mm)

Expected

Growth

Rate

Oil Exploration

1.4

450

4.0%

Oil Refining

1.1

525

2.5%

Gas & Convenience Stores

0.8

600

3.0%

The risk-free rate of interest is 3% and the market risk premium is 5%.

43) The overall asset beta for Wyatt Oil is closest to:

A) 0.95

B) 1.05

C) 1.15

D) 1.25