i. Harry Davis is interested in establishing a new division that will focus primarily on developing new Internet-based projects. In trying to determine the cost of capital for this new division, you discover that specialized firms involved in similar projects have, on average, the following characteristics: (1) their capital structure is 15% debt and 85% common equity, (2) their cost of debt is typically 12%, and (3) they have a beta of 1.75. Given this information, what would your estimate be for the new divisions cost of capital?