Question: please solve this problem without using Excel and show all steps. 5. A firm has two divisions. You are given: Asset Beta Market Division Capitalization

please solve this problem without using Excel and show all steps.

5. A firm has two divisions. You are given: Asset Beta Market Division Capitalization 10,000,000 B 6,000,000 Total 16,000,000 Debt 5,000,000 2,000,000 7,000,000 1.2 0.9 You are given: (i) The annual effective risk-free interest rate is 0.03. (ii) The market risk premium is 0.05. (iii) The debt beta for both divisions is 0. Calculate the equity beta for division B

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