Question 28 Not yet answered Marked out of 4.00 Pag question Q28. You are trying to determine the cost of capital of the Fly-by-Night division of the HCSH company. You have been told to use the following target capital structure is 40% debt and 60% equity. The pure-play beta of the division is 2. The (after-tax) cost of debt is 4%. The risk-free rate is 3%. The market risk premium is 7%. What would be the appropriate cost of capital for the division? Select one: O a. 10.2% b. 8.8% OC. 8.2% d. 11.8% e. None of the above