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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 &

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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%. The value of the oil exploration division is closest to: O A. $4500 B. $10,000 C. $7500 OD. $8750

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