Fuzzy Logic Inc., a global conglomerate, is interested in determining the opportunity cost of capital for two of its divisions (A and B) that have vastly different risks. The appropriate D/E ratios for DivisionA is 1.1 and for Division B is 0.95. Two pure-play firms have been identified for these divisions. The pure-play for Division A has a D/E ratio of 0.6, tax rate of 30%, and regression beta of 1.1. The pure-play for Division B has a D/E ratio of 0.8, tax rate of 45%, and regression beta of 1.2. The expected return on the market portfolio = 10%, the risk free rate = 2.75%, and the tax rate for Fuzzy Logic Inc. and its divisions = 35%. What is the opportunity cost of capital for Division A and Division B. (Hint: You can use CAPM to compute the opportunity osts of capital.) a) 10.50% and 11.08%. b) 8.37% and 8.79%. 12.38% and 12.52%. 6.04% and 16.23%.