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Problem 12-24 Question Help Weston Enterprises is an all-equity firm with two divisions. The soft drink division has an asset beta of 0.68, expects to generate free cash flow of 567 million this year, and anticipates a 4% perpetual growth rate. The industrial chemicals division has an asset beta of 1.16, expects to generate free cash flow of $80 million this year, and anticipates a 3% perpetual growth rate. Suppose the risk free rate is 4% and the market risk premium is 4% a. Estimate the value of each division b. Estimate Weston's current equity beta c. Estimate Weston's current cost of capital. Is this cost of capital useful for valuing Weston's projects? How is Weston's equity beta likely to change over time? a. Estimate the value of each division The cost of capital for the soft drink division is 6.72 % (Round to two decimal places.) The value of the son drink divisions $ milion (Round to one decimal place.) Modules ator Enter your answer in the answer box and then click Check Answer 6 parts remaining Clear All Check Arne - here to search