In the green box underneath, please comment on the differences in risk between the two companies as reflected in their respective Required Rates of Return and Weighted-Average Costs of Capital. Explain why these are different and how the sectors in which these companies operate affect these differences. Company Name A Company Name B Sector & Industry Non-alcoholic Beverage Sector & Industry Oil and Gas Exploration and production Beta 0.78 Beta 1.04 Rf 2.98% Rf 2.99% 5.12% 6.77% Equity Risk Premium (= Beta * (E(RM) - Rf)) Equity Risk Premium (= Beta * (E(RM) - Rf)) Required Rate of Return 8.10% Required Rate of Return 9.76% WEquity 86.07% WEquity 79.40% W Debt 13.03% W Debt 20.60% After-tax Cost of Debt 2.90% After-tax Cost of Debt 2.70% WACC 7.40% WACC 8.30% In the green box underneath, please comment on the differences in risk between the two companies as reflected in their respective Required Rates of Return and Weighted-Average Costs of Capital. Explain why these are different and how the sectors in which these companies operate affect these differences. Company Name A Company Name B Sector & Industry Non-alcoholic Beverage Sector & Industry Oil and Gas Exploration and production Beta 0.78 Beta 1.04 Rf 2.98% Rf 2.99% 5.12% 6.77% Equity Risk Premium (= Beta * (E(RM) - Rf)) Equity Risk Premium (= Beta * (E(RM) - Rf)) Required Rate of Return 8.10% Required Rate of Return 9.76% WEquity 86.07% WEquity 79.40% W Debt 13.03% W Debt 20.60% After-tax Cost of Debt 2.90% After-tax Cost of Debt 2.70% WACC 7.40% WACC 8.30%