Question 2. (10 marks) Your firm is an all-equity firm with two divisions. The first division has an asset beta of 0.60, expects to generate free cash flow of $50 million this year, and anticipates a 3% perpetual growth rate. The second division has an asset beta of 1.20, expects to generate free cash flow of $70 million this year, and anticipates a 2% perpetual growth rate. Suppose the risk-free rate is 4% and the market risk premium is 5%. a. Estimate the value of each division. (4 marks) b. Estimate you firm's equity beta and cost of capital. (4 marks) c. Is the firm's cost of capital useful for valuing your firm's projects? Explain. (2 mark)