CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 40% 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 4.8%, a risk-free rate of 2.8%, and a market risk premium of 5.7%.

	Beta	% Equity	% Debt
CoffeeStop	0.58	96%	4%
BF Liquors	0.26	88%	12%

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