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You have the following information about the three division that make up your company: Division X Division Y Division Z Beta 1 . 0 5

You have the following information about the three division that make up your company:
Division X Division Y Division Z
Beta 1.05.751.30
Additionally, you observe that the risk-free rate on 10-year government securities is 4.3% and you estimate that the market equity risk premium is 5.5%. Please calculate the following as a percentage with two decimal points (for example 4.52%)
a. Please calculate the divisional cost of capital Division X.
b. Please calculate the divisional cost of capital Division Y.
c. Please calculate the divisional cost of capital Division Z.
d. Which of these divisions is the riskiest (in terms of market risk)? Division Y would be the riskiest division in terms of market risk.

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