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Expected Growth Rate Use the following information to answer all of the questions. Next Period's Hank Anti Amazon Asset Beta Expected Free Cash Flow (mm)

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Expected Growth Rate Use the following information to answer all of the questions. Next Period's Hank Anti Amazon Asset Beta Expected Free Cash Flow (mm) Hank Online L 1.4 450 hCloud 1.1 525 Hank Food 0.8 600 4.00% 2.50% 3.00% The market risk premium is 5% and US Treasury 10Y rate is 3%. 1) The cost of capital for the Hank Online division is closest to: 06.0%. o 7.0%. 8.5%. O 10.0%. O 10.5%

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