CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 38% 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 2.2%, and a market risk premium of 5.1% CoffeeStop BF Liquors Beta 0.59 0.26 % Equity 96% % Debt 4% 89% 11% Note: Assume that the firm will always be able to utilize its full interest tax shield. The weighted average cost of capital is % (Round to two decimal places.)