Question 13 (3.03 points) 45 Mid-States is a multi-divisional utility company. Mid-States has four divisions with the following betas and proportions of the firm's total assets: Division Beta % of Assets Electric & Gas 0.75 Bus transportation 1.21 20 Real estate 2.32 Recreation 1.85 The risk-free rate is 7 percent and the return on the stock market as a whole is 16%. If Mid-States is considering a residential development, what should the firm use as its cost of equity in evaluating this project? 25 10 O 37.12% 20.88% 044.12% O 27.88%