The document calculates the cost of capital for Midland on a firm-wide and divisional level. It determines asset betas of 0.9325, 1.0490, and 0.4517 for the E P, R M, and PC divisions respectively based on comparable firms. Divisional betas are re-levered at target debt-to-equity ratios to calculate costs of equity using CAPM, with the cost of equity for E P determined to be 11.25%.