las X COD Question 14 16 pts Omega Co. has two divisions: food and electronics which account for 40% and 60% of its total asset value. respectively. The current Debt-to Assets ratio of Omega Co. is 0.3. The firm's debt has a beta of 0.1. By researching companies in the same industry. you identified the following comparable forms for each Division Comparable firms Equity beta Debt beta Debt/Equity 13 0.3 0.25 Sony United Foods 9 0. 0 0.60 The isk free rate is 5% and the expected market risk premium is 6%. a) (5 pts) What is the asset beta of each comparable firm? b) (5 pts) What is the cost of capital for each division? c) (6 pts) What is the equity beta of Omega Co.? BIVAN LEE 2 1. xx, - 2 V T 12pt - Paragraph - Exa Use Betas From Comparables to use comparable betas firms in the industry with similar