15.) CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 35% and collects the following information. If it plans to finance 11% 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 2.2%, and a market risk premium of 6.6%.

FIN 3403 Fall 2019 Homework: Chapter 13 Homework Score: 0 of 1 pt 15 of 17 (11 complete) P 13-23 (similar to) % Debt CoffeeStop BF Liquors Beta 0.62 0.28 % Equity 94% 89% 11% 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.) Enter your answer in the answer box and then click Check Answer Clear All All parts showing