1.

When you calculate Beta average for division for which no compare companies
data is available (Petrochemical in this case)based on weighted average method, on
what basis you calculate weighted average , is it Asset? Revenue? Profit?
2. EMRP we have taken 5% in this case, but EMRP based on historical data is also
given (in range 6-6.4%), which one should we choose or will be better in this case?

In response to question What are the difficulties while calculating cost of capital for
individual division, I answered that It would be difficult to find Debt/Equity ratio for
individual divisions.

In response to question why we are calculating separate WACC for each division
separately, answered that because each division has different risk associated with
it.