(a) Your company has two divisions: One division sells software and the other division sells computers through a direct saleschannel, primarily taking orders over the internet. You have decided that Dell Computer is very similar to your computerdivision, in terms of both risk and financing. You go online and find the following information: Dell's beta is 1.15, therisk-free rate is 4.7%, its market value of equity is $65.1 billion, and it has $702 million worth of debt with a yield to maturity of 5.9%. Your tax rate is 40% and you use a market risk premium of 5.9% in your WACC estimates. i(.) What is an estimate of the WACC for your computer salesdivision? (ii.) If your overall company WACC is 11.9% and the computer sales division represents 38%of the value of your firm, what is an estimate of the WACC for your software division? Note: Assume that the firm will always be able to utilize its full interest tax shield. (b)CoffeeCarts has a cost of equity of 15.4%, has an effective cost of debt of 4.2%, and is financed 71% with equity and 29% with debt. What is this firm's WACC? (c) Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equity firm that specializes in this business. Suppose Harburtin's equity beta is 0.86, therisk-free rate is 3.7%, and the market risk premium is 4.8%. If your firm's project is all-equity financed, estimate its cost of capital. (d) 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 15% 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 4.6%, a risk-free rate of 3.1%, and a market risk premium of 5.8%. Beta % Equity % Debt CoffeeStop 0.63 94% 6% BF Liquors 0.24 85% 15%