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XYZ Corp is an all equity firm with a beta of 2.0. It has two divisions (A and B). Division A accounts for 20 percent

XYZ Corp is an all equity firm with a beta of 2.0. It has two divisions (A and B). Division A accounts for 20 percent of firm value and Division B accounts for 80%. The company has determined that the cost of capital for Division A is 10 percent. Assuming the expected return on the market is 10 percent and the risk-free rate is 3 percent.

a. What is the cost of capital for Division B?

-I got 16.66 But am not sure I am doing it right.

B. What is the beta of Division B?

-For this one, I got 2.25 although. I do not think I am doing it right.

Thank you in advance! I will be sure to give a thumbs up!

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