The analysis of a two-division company (DV2) has indicated that the beta of the entire company is 2 . The company is 100 -percent equity funded. The company has two divisions: Major League TV (MLTV) and Minor League Shipping (MLS), which have very different risk characteristics. The beta of a pure-play company comparable to MLTV is 2.50 while for MLS the beta of a comparable pure company is only 0.68. The risk-free rate is 3.1 percent and the market risk premium is 6 percent. Assume all cash flows are perpetuities and the tax rate is zero. (a) Calculate the cost of capital of the entire company. (Round answers to 2 decimal places, e.g. 25.25\%.)