CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavoured liquor. Suppose the firm faces a tax rate of 38% and collects the information in the table below. If the company 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 5.4%, a risk-free rate of 3.1%, an equity beta of 0.24, and a market risk premium of 6.5%. Beta % Debt % Equity 95% 0.62 5% CoffeeStop Brown-Forman Liquors 0.24 88% 12% Note: Assume that the firm will always be able to utilize its full interest tax shield