Assume that your company is made up of two divisions. Division 1 comprises 50 percent of the company while Division 2 makes up 50 percent of the company. The levered beta for the company as a whole is equal to 1.40 and the company's debt/value ratio is 50 percent (you may assume that appropriate values for Division 1 and 2 are also 50 percent). If the risk- free rate is 4.0 percent, the market risk premium is 10.00 percent, the marginal tax rate is 40 percent, and the before-tax cost of debt is 6.00 percent then, as you can calculate, the WACC for the company is 10.80 percent. Now assume that other "pure" companies equivalent to Division 2 have an average unlevered beta of 0.58. Using this proxy for Division 2's unlevered beta, you should be able to determine (back out) the unlevered beta for Division 1, re-lever both betas, calculate the corresponding cost of equity, and then determine the appropriate WACC for each division. (For the purposes of levering and un-levering betas, you may use the Hamada equations and assume that the beta for debt is equal to zero.) Given this information, determine the appropriate WACC for Division 1. Answer is decimal format, out to three decimal places. For example, if your answer is 18.225%, enter "0.182