1. Company A primarily sells coffee. It recently introduced a new coffee-flavored liquor. Suppose the firm faces a tax rate of 35% and collects the following information.

	Beta	%Debt
Company A	1.13	71%
A standard coffee liquors Company	0.93	89%

If it plans to finance 89% of the new liquor-focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 5.64%, a risk-free rate of 5.63%, and a risk premium of 7.8%.

2. You have started a company and a venture capitalist has offered to invest. You own 100% of the company with 5,943,368 shares. The VC offers $1,932,638 for 1,316,749 new shares.

What is the implied price per share?