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The value of the oil exploration division is closest to: Use the following information to answer the question(s) below. Next Period's Expected Free Expected Asset

The value of the oil exploration division is closest to:
Use the following information to answer the question(s) below. Next Period's Expected Free Expected Asset Cash Growth Division Beta Flow ($mm) Rate Oil Exploration 1.4 450 4.0% Oil Refining 1.1 525 2.5% Gas & Convenience Stores 0.8 600 3.0% The risk - free rate of interest is 3% and the market risk premium is 5%. O A. $8750 OB. $10,000 O C. $4500 D. $7500

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