The distribution division will have less risk than the firm's real estate division, so its beta is expected to be 0.4 O 6.72% O 16.7996 o 15.59% O 16.89% This means that the distribution division's cost of capital will be: Wizard Co. expects 60% of its total value to end up in the real estate division, 25% in the consulting division, and 15% in the distribution division. 0 16.63% O 11.85% O 14.73% O 13.18% Based on this information, what rate of return should its investors require once it opens the new divisions? | |