Weston Enterprises is an all$-$equity firm with two divisions. The soft drink division has an asset beta of $0\mathrm{.}56,$ expects to generate free cash flow of $$63$ million this year, and anticipates a $3\%$

perpetual growth rate. The industrial chemicals division has an asset beta of $1\mathrm{.}02,$ expects to generate free cash flow of $$46$ million this year, and anticipates a $2\%$ perpetual growth rate. Suppose

the risk$-$free rate is $3\%$ and the market risk premium is $6\%.$

a$.$ Estimate the value of each division.

b$.$ Estimate Weston's current equity beta

c$.$ Estimate Weston's current cost of capital. Is this cost of capital useful for valuing Weston's projects? How is Weston's equity beta likely to change over time?