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 5.1%, a risk-free rate of 3.3%, and a market risk premium of 6.4%. %Equity 96% 88% Beta 0.59 0.26 %Debt 4% 12% CoffeeStop BF Liquors The weighted average cost of capital is?1%. (Round to two decimal places)