Intermountain Resources is a multidivisional company. It has three divisions with the following betas and proportion of the firms total assets:

Division	Beta	Proportion of Assets
Natural gas pipelines	0.50	50%
Oil and gas production	0.90	40
Oil and gas exploration	1.20	10

The risk-free rate is 5 percent, and the market risk premium is 8 percent.

1. What is the firms weighted average beta? Round your answer to two decimal places.
3. What required equity rate of return should the firm use for average-risk projects in its natural gas pipeline division? Round your answer to one decimal place. %
5. What required equity rate of return should the firm use for average-risk projects in its oil and gas exploration division? Round your answer to one decimal place. %