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 3.6%, and the market risk premium is 6.7%. The consulting division is expected to have a beta of 2.2, 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: 19.69% 19.29% 20.84% 18.34%