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Points given for correct answers A-D thank you! Wizard Co. currently has only a real estate division and uses only equity capital; however, it is

Points given for correct answers A-D thank you! image text in transcribed
Wizard Co. currently has only a real estate division and uses only equity capital; however, it is considering creating consulting and distribution divisions. Its beta is currently 1.3. The risk-free rate is 4.4%, and the market-risk premium is 6.2%. 8.80% 12.46% 10.12% 4.40% This means that the firm's real estate division will have a cost of capital of: The consulting division is expected to have a bet of 2.1, because it will be riskier than the firm's real estate division. 18.37% 18.77% 17.42% 19.92% This means that the firm's consulting division will have a cost of capital of: The distribution division will have less risk than the firm's real estate division, so its beta is expected to be 0.8. O 18.1796 9.36% 19.37% 19.47% This means that the distribution division's cost of capital will be: wizard Co. expects 65% of its total value to end up in the real estate division, 25% in the consulting division, and 10% in the distribution division. 16.24% 14.69% 13.39% 18.14% Based on this information, what rate of return should its investors requine once it opens the new divisions

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