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 1.4. The risk-free rate is 4.2%, and the market-risk premium is 5.8%. OOOO O 10.08% 8.40% 4.20% 12.32% 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. 16.75% 17.15% O 15.80% O 18.30% 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 0.4. OOOO 6.52% 17.85% 16.55% 17.75% This means that the distribution division's cost of capital will be: Wizard Co. expects 75% of its total value to end up in the real estate division, 10% in the consulting division, and 15% in the distribution division. 11.80% 13.10% 16.55% Based on this information, what rate of return should its investors require once it opens the new divisions? 14.65%