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 1.5. The risk-free rate is 4.2%, and the market-risk premium is 6.7%. 10.50% 8.40% 4.20% 14.25% This means that the firm's real estate division will have a cost of capital of: The consulting division is expected to have a beta of 2.0, because it will be riskier than the firm's real estate division. 20.10% 18.55% 17.60% 18.95% This means that the firm's consulting division will have a cost of capital of: The distribution division will have less risk than the firm's real estate division, so its beta is expected to be 0.6. 19.65% 18.35% 8.22% 19.55% This means that the distribution division's cost of capital will be: Wizard Co. expects 70% of its total value to end up in the real estate division, 20% in the consulting division, and 10% in the distribution division. 19.07% 15.62% 14.32% 17.17% Based on this information, what rate of return should its investors require once it opens the new divisions