Wizard Co. currently has only a real estate division and uses only equity capital; however, it is considering creating consulting and distribution divisions. Its beta is currently 1.3. The risk-free rate is 3.1%, and the market risk premium is 6.4%. This means that the firm's real estate division will have a cost of capital of: O 2.17% 7.13% O 6.20% O 11.42% The consulting division is expected to have a beta of 1.8, because it will be riskier than the firm's real estate division. This means that the firm's consulting division will have a cost of capital of: O 15.97% O 17.12% O 14.62% O 15.57%