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Newtown Propane currently has only a wholesale division and uses only equity capital; however, it is considering creating marketing and retail divisions. Its beta is

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Newtown Propane currently has only a wholesale division and uses only equity capital; however, it is considering creating marketing and retail divisions. Its beta is currently 1.2. The marketing division is expected to have a beta of 1.9, because it will have more risk than the firm's wholesale division. The retail division is expected to have a beta of 0.6, because it will have less risk than the firm's wholesale division. The risk-free rate is 4.8%, and the market-risk premium is 5.8%. Based on this information, fill in the missing information in the following below: Cost of Capital Wholesale division Marketing division Retail division If 70% of Newtown Propane's total value ends up in the wholesale division, 20% in the marketing division, and 10% in the retail division, then its investors should require a return of Cost of Capital Wholesale division Marketing division Retail division 9.60% 10.56% 4.80% 11.76% Cost of Capital Wholesale division Marketing division Retail division 17.17% 18.32% 16.77% 15.82% Cost of Capital Wholesale division Marketing division Retail division 16.57% 17.87% 8.28% 17.77% alue ends up in the who % in t If 70% of Newtown Propane's total value ends up in the wholesale division, 20% in the marketing division, and 10% in the retail division, then its investors should require a return of 12.22% 15.07% 13.52% 16.97%

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