CoffeeStop primarily sells coffee. It recently introduced a premium coffee$-$flavored liquor $($BF Liquors$).$ Suppose the firm faces

a tax rate of $25\%$ 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 $4\mathrm{.}8\%,$ a risk$-$free rate of

$3\mathrm{.}0\%,$ and a market risk premium of $6\mathrm{.}0\%.$

Note: Assume that the firm will always be able to utilize its full interest tax shield.