proposals was put forth by the Simis domestic manufacturng divion, and the oftee carte from the frmis diathbution company. Both groposss promse a return on invested captal to approwimately 12 percent, in the past, Newcaste has used a single frm-wide cost of captal to eviluale now invostments. to be sure that A is taving on the more premiting irvestment. Given the importance of geting the cost of captal estimate as close to correct as possible, the firmis chied financial officer has arked yo to prepare const of capital estimates for eoch of the two dvisions. The requate information newded to acoonclah your tak folows. - The cost of debt financing is 12 percent before a marginal lax rose of 25 percent. You may assume this cont of oebe is afler any fotaton conts the frm might incer - The risk-tree nate of interost on longiterm 4.5. Treasury bonds is currently 5.7 peroent and the matecisk premivm has averaged 38 seccent over the past sereral years. - Both ivisions adhece to target dobt talios of 60 percent. - The frin has sufficent internaly generaled funds such that no now shock will have ts be told bo raise equiy fonswing a. Eismaln the divilonal costs of captal for the manulacturing and dstibution dvaions