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Overall beta is . 7 9 . Cost of equity is 1 1 . 2 % . Firm is 1 0 0 % financed w

Overall beta is .79. Cost of equity is 11.2%. Firm is 100% financed w common stock. Division A estimated beta is 1.08 riskiest of all firms operations. What is appropriate cost of capital for Division A if market risk premium is 9.5%?
13.12
13.96
14.63
15.77
16.01

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