Question: Use the following information to answer the question(s) below. Next Period's Expected Free Expected Asset Cash Growth Division Beta Flow (mm) Rate Oil Exploration 1.4

Use the following information to answer the question(s) below. Next Period's

Use the following information to answer the question(s) below. Next Period's Expected Free Expected Asset Cash Growth Division Beta Flow (mm) Rate Oil Exploration 1.4 450 4.0% Oil Refining 1.1 525 2.5% Gas & Convenience Stores 0.8 600 3.0% The risk - free rate of interest is 3% and the market risk premium is 5%. A. 7.0% OB. 6.5% O C. 8.5% OD. 10.0% Use the following information to answer the question(s) below. Next Period's Expected Free Expected Asset Cash Growth Division Beta Flow (mm) Rate Oil Exploration 1.4 450 4.0% Oil Refining 1.1 525 2.5% Gas & Convenience Stores 0.8 600 3.0% The risk - free rate of interest is 3% and the market risk premium is 5%. A. 7.0% OB. 6.5% O C. 8.5% OD. 10.0%

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