Coffee Stop 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 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 3.2%, and a market risk premium of 6.7%. Beta %Equity % Debt CoffeeStop 0.62 96% 4% BF Liquors 0.27 88% 12% Note: Assume that the firm will always be able to utilize its full interest tax shield. GDD The weighted average cost of capital is 3.88 %. (Round to two decimal places.)