Assume UNR inc. wants you to calculate WACC of its two divisions: Restaurants and Insurance divisions. Betas of these divisions are unknown. But we need to compute divisional WACCs. Beta Market leverage Mc Donalds 1.2 60% Wendys 1.5 80% Geico 2 80% All state 1.2 40% Spread between S&P 500 Composite Returns and Long-Term U.S. Government Bond Returns is 7%. S. Government Interest Rates on 30-year bond is 4%. UNR inc's Restaurant division's Debt Rate Premium above Government is 5%. UNR inc's Insurance division's Debt Rate Premium above Government is 3%. Tax rate is 40%. . . 1. Assume that target capital structure of Restaurant division is 60% debt and 40% equity. What is the WACC of Restaurant division, under target capital structure? 2. Assume that target capital structure of Insurance division is 30% debt and 70% equity. What is the WACC of Insurance division, under target capital structure