Use the following data for questions 17-20. Walgreen Co is considering starting a home improvement stores division. The expansion would achieve diversification of Walgreen Co, since the risk of the project is not the same as the risk of the rest of the company. As a financial analyst for Walgreen Co, you have been asked to determine the WACC for the division. Information about Walgreen Co, potential peer companies, and the market follows. The risk free rate is 5% and the market risk premium is 6%. Assume the company has no bankruptcy risk, so its cost of debt is equal to the risk-free rate of 5% and its debt beta is zero. Walgreen Co's marginal tax rate is 40%. Information on peer companies follows: MV of Equity MV of Debt Company Lowe's Companies Inc The Home Depot, Inc Equity Beta 1.2936 $34.5 billion $4.14 billion 0.9605 $55.9 billion $11.18 billion MacBook Pro G Search or type URL Question 17 5 pts What is the average asset beta from comparable companies? O 2.222 O 1.754 O 1.128 O 1.025 Question 18 3 pts MacBook Pro Search artyna LRI Use the following data for questions 17-20. Walgreen Co is considering starting a home improvement stores division. The expansion would achieve diversification of Walgreen Co, since the risk of the project is not the same as the risk of the rest of the company. As a financial analyst for Walgreen Co, you have been asked to determine the WACC for the division. Information about Walgreen Co, potential peer companies, and the market follows. The risk free rate is 5% and the market risk premium is 6%. Assume the company has no bankruptcy risk, so its cost of debt is equal to the risk-free rate of 5% and its debt beta is zero. Walgreen Co's marginal tax rate is 40%. Information on peer companies follows: MV of Equity MV of Debt Company Lowe's Companies Inc The Home Depot, Inc Equity Beta 1.2936 $34.5 billion $4.14 billion 0.9605 $55.9 billion $11.18 billion MacBook Pro G Search or type URL Question 17 5 pts What is the average asset beta from comparable companies? O 2.222 O 1.754 O 1.128 O 1.025 Question 18 3 pts MacBook Pro Search artyna LRI