QUESTION 5 Eyes of the World Corporation has traditionally employed a firm wide discount rate for capital budgeting purposes. However, its two divisions- publishing and entertainment - have different degrees of risk given by BP = 1.0, BE = 2.0, and the beta for the overall firm is 1.3. The firm is considering the following capital expenditures: IRR Proposed Project P1 P 2 P3 Initial Investment $1M $3M $2M Publishing .130 .121 .090 E 1 .160 .170 Entertainment $4M $OM $5M E2 E 3 .140 Which projects would it accept if it estimates cost of capital separately for each division? Use 6% as the risk-free rate and 12 as the expected return on the market. 1. P2, 1. P2, P1, P2, P3 E1, E2, E3 211 .090 Entertainment E1 E2 E 3 $4M $OM $5M .160 .170 .140 Which projects would it accept if it estimates cost of capital separately for each division? Use 6% as the risk-free rate and 12% as the expected return on the market. P1, P2, P1, P2, P1, P2, P3 E1, E2, E3 P1, P2 P1, P3, E2 d. O P1, P2 QUESTION 6 Bry Bry Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ansv