1) What is the pistol division's WACC? ____ (Round 2 decimals)

2) What is the rifle division's WACC? ____ (Round 2 decimals)

t Manufacturing has two divisions: 1 pistols; and 2 rifles. Betas for e two d is ons have been deter ned to be beta pistol-0.6 and beta rifle = 0.8 The current risk free rate of return is 3.5%, and the expected market rate ofre 7.5%. The after-tax cost of debt for Colt is 7.5%. The pistol division's financial proportions are 45.0% debt and 55.0% equity, and the ritl d si 's a e 5.0% de tand 45 % y a. What is the pistol division's WACC? b. What is the rifle division's WACC? a. What is the pistol division's WACC? % (Round to two decimal places.)