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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

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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%. A. 7.0% OB. 6.5% O C. 8.5% OD. 10.0% 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%. A. 7.0% OB. 6.5% O C. 8.5% OD. 10.0%

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