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 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 5.1%, a risk-free rate of 2.7%, and a market risk premium of 6.5%. CoffeeStop BF Liquors Beta 0.64 0.27 % Equity 95% 89% % Debt 5% 11% Note: Assume that the firm will always be able to utilize its full interest tax shield. The weighted average cost of capital is 4.46 %. (Round to two decimal places.)