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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

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 3.6%, and the market risk premium is 5.8%. This means that the firms real estate division will have a cost of capital of: 7.20% 9.00% 1.80% 12.30%

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