Discount Retailers Has an Overall Beta Of

Discount Retailers has an overall beta of.96 and a cost of equity of 10.4 % for the firm overall. The firm is financed solely by common stock. Division A within the firm has an estimated beta of 1.13 and is the riskiest of all of the firm's divisions What is an appropriate cost of capital for division A if the market risk premium is 5 %?

A) 9.84 %
B) 11.03 %
C) 11.18 %
D) 11.25 %
E) 12.24 %