Colt Manufacturing has two divisions: 1) pistols; and 2) rifles. Betas for the two divisions have been determined to be beta (pistol)equals=0.5 and beta (rifle)equals=0.8. The current risk-free rate of return is 2.5%, and the expected market rate of return is 8%. The after-tax cost of debt for Colt is 6%. The pistol division's financial proportions are 37.5% debt and 62.5% equity, and the rifle division's are 47.5% debt and 52.5% equity. a. What is the pistol division's WACC? b.What is the rifle division's WACC?