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-play company is only 0.80 . The risk-free rate is 4.3 percent and the market risk premium is 9 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, eg. 25.25\%.) Attempts: 0 of 3 used Using multiple attempts will impact your score. 25% score reduction after attempt 1