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 5.3%, a risk-free rate of 3.5%, and a market risk premium of 5.3%. The weighted average cost of capital is %. (Round to two decimal places.) Your company has two divisions: One division sells software and the other division sells computers through a direct sales channel, primarily taking orders over the internet. You have decided that Dell Computer is very similar to your computer division, in terms of both risk and financing. You go online and find the following information: Dell's beta is 1.19, the risk-free rate is 4.7%, its market value of equity is S67.3 billion, and it has S695 million worth of debt with a yield to maturity of 6.4%. Your tax rate is 35% and you use a market risk premium of 5.3% in your WACC estimates. What is an estimate of the WACC for your computer sales division? If your overall company WACC is 11.9% and the computer sales division represents 44% of the value of your firm, v/hat is an estimate of the WACC for your software division? What is an estimate of the WACC for your computer sales division? The weighted average cost of capital for your computer sales division is 11.01 %. (Round to two decimal places.) If your overall company WACC is 11.9% and the computer sales division represents 44% of the value of your firm, what is an estimate of the WACC for your software division? The WACC for your software division is %. (Round to two decimal places.)