Colt Manufacturing has two divisions: 1) pistols; and 2) rifles. Betas for the two divisions have been determined to be beta

(pistol)equals=0.7 and beta (rifle)equals=1.3 The current risk-free rate of return is 1.5%, and the expected market rate of return is 5.5 %. The after-tax cost of debt for Colt is 7%. The pistol division's financial proportions are 32.5% debt and 67.5% equity, and the rifle division's are 42.5% debt and 57.5% equity.

a. What is the pistol division's WACC?

b.What is the rifle division's WACC?