Vou are the CFO of a pharmaceutical company with 100% equily financing. The compary/ stock has a beta of 0.7 . The market ritk premium and the rith-free interest rate are 10% and 3K, respectively. Vou have obtined the following information about the average cost of cevily (R) and the average cost of capital (MAcC) for firms in selected industries: Suppose that the compary is evaluaths a new venture. The venture has conventional cash fows and a 12x internal nte of retum uRe2. A (1 point What is the companys cost of capital? - Show your calcilation steps bilefk and dearh. C. (1 point) Suppose that the venture sa divenification of the companys budiness into the operition of a restarant chaln specialtaing in non-GMO organis foods. Should the new venture be purwed? Bdeflyexolin why