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Suppose Sanne & Sugg, Inc. has no debt. The risk-free rate is 4%. The expected market return is 14%. Here is a breakdown of the

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Suppose Sanne & Sugg, Inc. has no debt. The risk-free rate is 4%. The expected market return is 14%. Here is a breakdown of the company's business operations: 1/3 Retailer (beta - 2.0) 1/3 Financial services (beta = 1.3) 1/3 Electric Utility (beta -0.6) When evaluating a new electrical generation investment, which cost of capital should be used? 3.3% 10% 24% 18% 17%

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