0 Your company has two divisions One division sells software and the other division sells computers through a direct sales channel primarily taking orders over the internet You have decided that Dell Computer is very similar to your computer division in terms of both risk and financing You go online and find the following information Dell s beta is 1 17 the risk free rate is 4 3 its market value of equity is 67 7 billion and it has 705 million worth of debt with a yield to maturity of 6 4 Your tax rate is 40 and you use a market risk premium of 5 5 in your WACC estimates a What is an estimate of the WACC for your computer sales division The weighted average cost of capital for your computer sales division is to two decimal places Round b If your overall company WACC is 12 1 and the computer sales division represents 37 of the value of your firm what is an estimate of the WACC for your software division The WACC for your software division is Round to two decimal places