15. CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 38% and collects the following information. If it plans to finance 12% 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 4.7%, a risk-free rate of 2.5%, and a market risk premium of 6.5%. CoffeeStop BF Liquors Beta 0.61 0.23 % Equity 94% 88% % Debt 6% 12% Note: Assume that the firm will always be able to utilize its full interest tax shield. The weighted average cost of capital is %. (Round to two decimal places.)