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Posted on Jul 14, 2024

The consulting division is expected to have a beta of 2.2, because it will be riskier than the firms real estate division. This means that

The consulting division is expected to have a beta of 2.2, because it will be riskier than the firms real estate division.

This means that the firms consulting division will have a cost of capital of:

17.31%

17.71%

16.36%

18.86%

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